Environmental economics is an emerging area in the realm of economic science. Before 1970s a little attention was paid for the growth and development of this part of the area of knowledge in economics. The first oil stock in 1971 and thereafter the emergence of relatively higher levels of environmental damages at the global level prompted the scholars in this field to apply economic tools to environmental science. Studies on environmental science are plentifully available, however they do not cover the economic content of environment. Similarly, early economists of the classical and neoclassical regime made specific comments about the significance of nature and environment, but did not include them in their exposition of theories. Today, people all over the world have realised that environment is not just the study of flora and fauna, but a synthesis of study of various branches of knowledge like Science, Economics, Philosophy, Ethics, Anthropology, etc. Therefore, a study of environmental economics calls for a detailed understanding about various environmental factors, their influence in the economy, their functions upon the environment, and their impacts upon the life of the people of the present and future.