Asian Basic and Applied Research Journal

The main principle of environmental economics is the goal of regional income growth by maintaining environmental quality in a balanced manner. This study uses a literature review method that utilizes various literature sources and research findings related to economic and environmental aspects. The data collection process entailed searching for sources and combining information from multiple origins, including books, journals, and past research. The results indicate that qualitative research was conducted with a design aimed at uncovering phenomena in a holistic and contextual manner by collecting data from natural environments and utilizing researchers as primary tools. The results were not derived using statistical methods or as a result of computations. Several facts regarding the link between the economy and the environment were obtained from literature reviews and discussions with various stakeholders. Therefore, natural resources and the environment are also important elements of economic growth. And if the quality of the environment declines beyond its carrying capacity, the economy will lose its ability to grow. In order to move towards an efficient and environmentally conscious economic system to support sustainable development programmes, every economic activity must undergo a process of internalisation. Conceptually, this process takes into account environmental costs or losses suffered by other parties as a component of production costs. In decision-making and policy implementation at all levels of society, environmental considerations must be an integral component.