Government, market, and communities are the three pillars of the economy. The existing books in economics on environmental policy focus on the role of one or two of these pillars in environmental management. This book comprehensively discusses the role of all these three institutions in environmental management drawing from some of the work done at the Institute of Economic Growth, Delhi during the last forty years. The government uses budgetary policy instruments of prices, taxes, public expenditures, and direct policy instruments like pollution taxes, standards, quantity restrictions, and penalties for environmental management.