Environmental economy

Environmental economics concerns how economic activity and policy affect the environment in which we live. Pollution occurs as a result of some productive activity and household consumption, but pollution is not an inevitable result of economic activity; environmental policies can oblige polluting companies to clean their emissions, and encourage people to change their behaviors, but these measures involve some costs; such as installing pollution control devices. Therefore, there is a trade-off: a cleaner environment but at the cost of high economic expenses.