Economics Principles for Natural Resources and Environmental Management

Abstract

Degradation of natural resource and environment from production and consumption process in economic system requires control, prevention and solution for sustainable economic efficiency. This article explains economics principle, polluter pay principle (PPP), Payment for Ecosystem Services (PES), and ecoefficiency respectively, as tools for natural resource and environmental management. PPP includes the cost of social and environment in the price of goods and services by using command and control measure and incentives; user charge, effluent charge, tradable permit, property tax, product tax differentiation, depositrefund system, subsidies, environmental credit, tax allowances, performance bond, and fine. PES focuses on building concrete agreement on ecosystem services between buyer and seller which provides an
incentive for users of ecosystem services to conserve natural resources and environment. Several foreign countries have used PES concretely while Thailand is undertaking pilot project about PES. Eco-efficiency recognizes externalities of natural resources and ecosystems produced by production and consumption. This principle is applied to more than 20 Thai state enterprises in the sectors of energy, transport, public assistance, agriculture, and industry, including economic activities of business sectors and community entrepreneurs.