The Hard Core Of The Neoclassical Economic Theory

The hard-core of neoclassical economic theory has been criticized, it constructed a protective belt that helped adjusts the main ideas. The protective belt theory includes environmental economics that help keeps the strong core of neoclassical economics. It explains the hard-core of the neoclassical economic research program and protects it from negative heuristic attacks. Environment economic seeks to find how the environmental impacts the economy, which leads to the decisions rational people make without including the damages in the planet through the hard-core of neoclassical economic. The paper will discuss how environment economic connect towards the neoclassical economic. The paper will also include, a comparison in the role of environmental …show more content…
The wealth of this planet is accurately measured through sustainability of the economic model; which can be defined as the sustainability of finite resources for the future generation, if we can have sustainability with resources without disrupting the future ability to keep resources than we have developed as a nation. Lastly, the government has a job in regulating the well-being of society and its job is to protect the wealth of the nation by regulating markets from creating over use of the planet. Otherwise, the environment will be exhausted from excess use of corporations and markets and as an economy we should use the natural resources …show more content…
In addition, they assume rational people have perfect information. One way that the environmental economics helps protect the neoclassical economics is considerations of the environment limited resources. The most important key assumptions of environmental economics, it assumes externalities and optimizes efficiency in the environment. However, the main assumptions neoclassical have is that resources are infinite or can be substituted, whereas the environmental economists are not certain that the market forces will protect environmental services until the proper valuation and externalities are established. In addition, neoclassical science research program is critical about government intervention, in environmental economics they are objective with the role of government intervention which is needed to regulate negative externalities like pollution, for example, if we do not regulate pollution this planet will generate harmful causes to our society and therefore, damage our society by depleting resources for the next