Regulations and scientific techniques are used to solve environmental problems. When we use regulations and techniques, we need to consider cost and efficiency because money, human resources and time are limited.
In Environmental Economics , data analysis methods are studied. I classified by micro analysis and macro analysis. System Dynamics can be used in both analysis.
Cost-Benefit Analysis is used when both cost and benefit is measured by money. It is used to find the best point of the balance. In environmental economics, discount rate is used to be considered the change of value in the future. And this is because environmental economics wants to study sustainability. This idea is same to the interest in the finance. I do not confirm that the discount rate is valid to study sustainability.
Cost-Effect Analysis is used when the effect cannot be measured by money.
Multi-Criteria Analysis uses various indexes to decide totally. For easy understanding, this method analysis the sum of indexes. Weight for each indexes need subjectivity.
One of the kinds of Multi-Criteria Analysis is AHP.
This method uses Game Theory and Artificial Intelligence methods.
Easy macro analysis is comparing the number of Index of Economical Assessment by areas on the earth or time ranges.
Input-Output Analysis is more complex method. Input-Output model analysis the flow between industries. By the way, original Input-Output model does not include externality , so to analyze environmental problems, some idea seem to be added.
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