(i) An economic activity (production of goods and services) is expected to generate utility (economic well-being) when it is eventually consumed by households.
(ii) At the same time, given that pollution is an undesirable byproduct of production activities, households’ economic wellbeing would be negatively impacted due to a deterioration in environmental quality.

(i) Trees contribute to their environment by providing oxygen, improving air quality, climate amelioration, conserving water, preserving soil and supporting wildlife.
(ii) During the process of photosynthesis, trees take in carbon dioxide and produce the oxygen we breathe. So trees are considered to be the lungs of the earth.

(i) Acid rain is one of the consequences of air pollution.
(ii) It occurs when emissions from factories, cars or heating boilers contact with the water in the atmosphere.
(iii) These emissions contain nitrogen oxides, sulfur dioxide, and sulfur trioxide which when mixed with water becomes sulfurous acid, nitric acid, and sulfuric acid.
(iv) This process also occurs by nature through volcanic eruptions

(i) The climate change refers to seasonal changes over a long period with respect to the growing accumulation of greenhouse gases in the atmosphere.
(ii) Recent studies have shown that human activities since the beginning of the industrial revolution.

When some residents of a locality hire a private security agency to patrol their area, the other residents of the area also benefit from better security without bearing cost

(i) A pure public good is one for which consumption is non-revival and from which it is impossible to exclude a consumer.
(ii) Pure public goods pose a free-rider problem. As a result, resources are depleted

(i) Environmental quality is a set of properties and characteristics of the environment either generalized or local, as they impinge on human beings and other organisms.
(ii) It is a measure of the condition of an environment relative to the requirements of one or more species and to any human need.

The interdependence of economics and environment is given in the figure

(i) The key objective of EE is to identify those particular tools or policy alternatives that will move the market towards the most efficient allocation of natural resources.
(ii) EE takes into consideration issues such as the conservation and valuation of natural resources, pollution control, waste management, and recycling.

Global warming is the current increase in temperature of the earth's surface (both land and water) and its atmosphere.

1. Use of noise barriers
2. Newer roadway for surface transport
3. Traffic control
4. Regulating times for heavy vehicles
5. Installations of noise barriers in the work place
6. Regulation of Loudspeakers

Environmental goods are typically non-market goods, including clear air, clean water, landscape, green transport infrastructure, public parks, rivers, mountains, forest and beaches.

(i) An ecosystem includes all living things (plants, animals and organisms) in a given area, interacting with each other and also with their non-living environments (weather, earth, sun, soil, climate, atmosphere).
(ii) It is the foundation of the Biosphere and determine the health of the earth.

(i) Environment means "all the conditions, circumstances, and influences surrounding and affecting the development of an organism or group of organisms".
(ii) It also means that the complex of physical, chemical and biotic factors that act upon an organism or an ecological community ultimately determine its form and survival.