This course explains about environmental problems can be approached and analysed using economic theory. Furthermore, the course demonstrates how economics guides address pressing environmental problems such as global warming, ozone depletion, air and water pollution at different scales (global, regional). In particular, the course will establish the foundations of environmental economics. The students will learn how markets function and under which conditions markets fail, giving rise to a misallocation of resources causing environmental problems. These insights will then be used to analyse how policy interventions can correct market failure and enhance social welfare.