This book is the second edition of a text based on a report commissioned by the Swedish International Development Authority (SID A). The financial grant from SIDA which made the work possible is hereby gratefully acknowledged. There are already many books on the market about environmental economics, some of them very good. What is special about this one? We do not claim to have obtained new results, but we have our own way of presenting the subject matter. In particular, we are of the opinion that policy failures are often overlooked as an obstacle to efficient environmental management....

This book reports the more policy-oriented results of the Biodiversity programme of the Royal Swedish Academy of Sciences Beijer Institute. The programme brought economists and ecologists together to consider where the problem in biodiversity loss really lies, what costs it has for society, and how it might best be addressed. The results are strikingly different from those reported in other works on the subject. Biodiversity loss matters for all ecosystems -- not just the megadiversity tropical forests. And it matters because it compromises the resilience and so the productivity of those...