This book introduces the basic tools of dynamic optimization in economics to study environmental problems‎,‎ applies econometric methods to estimate and test the models derived by dynamic optimization‎,‎ and discusses environmental problems in a broad perspective‎,‎ including the design and implementation of environmental policies‎.‎ Although the coverage is selective‎,‎ it represents what the author has to offer from his perspective and experience gained in research in dynamic optimization‎,‎ econometrics and policy analysis‎,‎ especially for China‎.‎ The volume is self‎-contained for readers with mathematical background of first‎-year graduate students in the analytical fields of science and engineering but only limited training in economics‎,‎ while an economics text presumes more knowledge of economics‎.‎ Once the tools are mastered‎,‎ the reader can pursue his own research on the topic if he is interested‎,‎ or simply become a more mature citizen in the global economy‎.‎