Environmental challenges, and the potential solutions to address them, have a direct effect on living standards, the organization of economies, major infrastructures, and modes of urbanization. Since the publication of path-breaking contributions on the governance of environmental resources in the early 1990s, many political initiatives have been taken, numerous governance experiments have been conducted, and a large multi-disciplinary field of research has opened up. This interdisciplinary book takes stock of the knowledge that has accumulated to date, and addresses new challenges in the...

Many believe economic growth is incompatible with ecological preservation. Green Capital challenges this argument by shifting our focus away from the scarcity of raw materials and toward the deterioration of the great natural regulatory functions (such as the climate system, the water cycle, and biodiversity).

Although we can find substitutes for scarce natural resources, we cannot replace a natural regulatory system, which is incredibly complex. It is therefore critical that we introduce a new price into the economy that measures the costs of damage to these regulatory functions....