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This paper identifies and discusses the five main areas of environmental management public policy that pose serious challenges to Asian governments. The first is the emerging issue of siting environmentally unfriendly facilities that may be necessary for growth, but with the social and environmental costs borne primarily by local host residents and neighbourhood municipalities, more commonly known as the not-in-my-backyard syndrome. The second issue is the critical need for pricing of non-market environmental goods. Third is the issue of waste generation. The fourth challenge is that of transboundary pollution, which has become increasingly important with regard to its effects on health and foreign relations. Lastly, the paper discusses global warming and climate change. Discussions on cost-benefit analysis and the more novel method of establishing damage schedules are also presented. This is particularly relevant to fundamental differences between developed and less developed countries. [ABSTRACT FROM AUTHOR]