Money wages,price of nontradable goods,and the environmental goods

The effect of environmental goods on money wages and the price of nontradable goods is analyzed. Environment is treated as a regular good, and as such, is added to the two other composite goods which are typically used as components of the utility function. In the budget constraint the relevant amount of environmental goods consists of that part which the individual might purchase in the market. Under these conditions it is demonstrated that an equilibrium situation will prevail if either the money wage or the price of the nontradable good, or both, are a function of the given amount of the environmental goods.