This textbook attempts to demonstrate how concepts and methods of microeconomics can illuminate important questions in public affairs, such as the management of water resources to implement the "polluter pays" principle, the reopening of disused railway lines and subsidy for public transport. The issues on which the book concentrates have been chosen on the basis that they are all significant to the developed economies of Europe and North America. An appendix of concepts and results has been included for the benefit of those with little previous knowledge of microeconomics. The book will be of benefit to advanced undergraduates and first year graduates studying public economics after an intermediate microeconomics course, and for others involved in implementing public policy.