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Essay from the year 2015 in the subject Economics - Other, grade: 2, Vienna University of Economics and Business Administration (Ecological economics), course: Actors, language: English, abstract: The aim of the essay is to set forth the role of institutions in environmental management, particularly by drawing a comparison to both the neoclassical and institutional approaches as applied specifically to biodiversity management. Ultimately, the essay will seek to elaborate on how the two approaches complement each other.Water is a necessity to life as institutions are to social, environment, and economic order; institutions shape values of a society. Values, norms, beliefs, and conventions are derived from world views and perceptions of a society. Examining nature's importance for human well-being is not a simple task; there is no single solution to challenges facing humankind. Nonetheless, institutions create a conducive environment to achieve solutions. Neoclassical economists suggest that to solve environmental degradation, we need to subject nature to the same treatment like any other good, tradable on the market. On the contrary, institutional economists argue that to solve the problem of environmental degradation, we need to understand the power play in society; power that shape behaviour, values, and perception. Institutions are necessary for handling social-environmental issues such as biodiversity loss.
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