Natural Resource and Environmental Economics is among the leading textbooks in its field. Well written and rigorous in its approach, this third edition follows in the vein of previous editions and continues to provide a comprehensive and clear account of the application of economic analysis to environmental issues. The new edition retains all of the topics from the second edition but has been reorganised into four parts: I Foundation II Environmental Pollution III Project Appraisal IV Natural Resource Exploitation. Features: New chapters on pollution control with imperfect information; cost-benefit analysis and other project appraisal tools; and stock pollution problems Substantial extensions to existing chapters, including a thorough account of game theory and its application to international environmental problems; fuller treatments of renewable resource and forestry economics; and greater emphasis on spatial aspects of pollution policy New pedagogical features including learning objectives, chapter summaries, further questions and more concise boxed cases New Companion website at www.booksites.net/perman provides a rich variety of resources for both lecturers and students Detailed mathematical analysis is covered in appendices to the relevant chapters Writing style and technical level have been made more accessible and consistent. This text has been written primarily for the specialist market of second and third year undergraduate and postgraduate students of economics. Roger Perman is Senior Lecturer in Economics, Strathclyde University. His major research interests and publications are in the field of applied econometrics and environmental economics. Michael Common is Professor in the Graduate School of Environmental Studies at Strathclyde University. His major research interests are the development of ecological economics and policies for sustainability. Yue Ma is Associate Professor in Economics, Lingnan University, Hong Kong, and Adjunct Professor of Lingnan College, Zhongshan University, China. His major research interests are international banking and finance, as well as environmental economics for developing countries. The late James McGilvray was Professor of Economics at Strathclyde University. He made important contributions in the fields of input-output analysis, social accounting and economic statistics, and to the study of the economics of transition in Central and Eastern Europe.