Essays on Environmental Economics

Neoclassical economics has outlived its usefulness inexplainning the functioning of the economy in the changed context of the degradation of environment caused by economic activities. It failure to admit the law of entropy in the economic system has led to absurd claims for unlimited growth of economy and continous substitutability of natural resources by man-made capital against the reality of constant dispersion of matter and energy fro economic activities in the environment – an act that cannot but set limit to growth. Neoclassical economics, as the author argues, is incapable of responding to the challenges posed by environmental degradatioin caused by economic activities. It is time for changing the paradigm of economic theory. The author calls for redefining the boundaries of economics along the lines suggested by Nicholas Georgescu-Roegen.