Editing Environmental economics (section)

=== Market failure ===
[[File:Pollution de l'air.jpg|thumb|right|230px|Air pollution is an example of market failure, as the factory is imposing a negative external cost on the community.]]
Central to environmental economics is the concept of market failure. [[Market failure]] means that markets fail to allocate resources efficiently. As stated by Hanley, Shogren, and White (2007):<ref>Hanley, N., J. Shogren, and B. White (2007). Environmental Economics in Theory and Practice, Palgrave, London.</ref> "A market failure occurs when the market does not allocate scarce resources to generate the greatest social welfare. A wedge exists between what a private person does given market prices and what society might want him or her to do to protect the environment. Such a wedge implies wastefulness or economic inefficiency; resources can be reallocated to make at least one person better off without making anyone else worse off." This results in a inefficient market that needs to be corrected through avenues such as government intervention. Common forms of market failure include externalities, non-excludability and [[Rivalry (economics)|non-rivalry]].<ref name=":3">{{Cite journal |last=Omer |first=Abdeen Mustafa |date=March 17, 2023 |title=Environmental and Ecological Economics |url=https://www.heraldopenaccess.us/openaccess/environmental-and-ecological-economics |journal=HSOA Journal of Environmental Science: Current Research}}</ref>