Environmental economics is important because it helps us understand the relationship between the economy and the environment, guiding how we use natural resources sustainably. It studies the costs and benefits of environmental policies, helping governments and businesses make informed decisions that balance economic growth with environmental protection. By assigning economic value to clean air, water, and biodiversity, environmental economics highlights the true cost of pollution and resource depletion, encouraging practices that reduce harm and promote conservation. This field plays a crucial role in addressing challenges like climate change, resource scarcity, and environmental degradation, ensuring that economic development today does not compromise the well-being of future generations.

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