This book presents a broad overview of the key issues in modern environmental economics with a focus on understanding and solving urban pollution challenges in developed and developing nations. This book explores how cities and nations can achieve the "win-win" of economic growth and reduced urban pollution. Special attention is paid to the incentives of households, firms and governments in reducing the production of pollution. The book examines a number of urban pollution challenges including; air, water, noise, garbage pollution and the global challenge of climate change. A special feature of the book is to discuss the microeconomics of climate change adaptation. Throughout the book, there is a close connection between hypothesis testing and statistical analysis and data collection. The connection between economic theory and applied econometrics is emphasized. Matthew E. Kahn is the Bloomberg Distinguished Professor of Economics and Business at Johns Hopkins University. He holds a Ph.D. in economics from the University of Chicago. He taught at Columbia, the Fletcher School at Tufts University, UCLA and USC. He has served as a Visiting Professor at Harvard, Stanford and the National University of Singapore. He is the author of Green Urban Growth and the Environment (Brookings Institution Press 2006) and the co-author of Heroes and The Social Face of War (Princeton University Press 2008). He is the author of How Our Cities Will Thrive in the Hotter World (Basic Books 2010). His research areas include; environmental, urban, energy and real estate economics.