1. Introduction -- 2. Review of microeconomic tools -- 3. Indicators of environmental and economic well-being -- 4. Economic growth and the environment -- 5. Joint production of desirable and undesirable outputs -- 6. Estimating environmental performance -- 7. Public goods and bads -- 8. Externalities and common property resources -- 9. Valuing environmental resources -- 10. Endangered species -- 11. Interest rates, cost-benefit analysis, and nonrenewable resources -- 12. Renewable resources -- 13. Transaction costs and institutional choice -- 14. Retrospect and future prospects.