Neo-classical approach assumes that active promotion of perfectly competitive markets with individual rational choice lead to efficient allocation of resources based on relative prices signaled by the markets. An alternative Approach of Environmental Analysis is Classical economist were generally pessimistic about the possibility of continued economic progress. The Limits to Growth points out the natural resource, whose present levels of consumption are such that the known reserves will be exhausted that will seriously affect economic production and the equality and existence of life. The price mechanism like incentives to explore new reserve and develop new technologies will not curb the consumption pattern of people. The capitalist moves for exchange value through commodification of all life pointed to the separation of people from their resource means society sacrifices their use value, which is sustainable production. The problem of deforestation is one among the deleterious environmental problems. There are myriad factors responsible for deforestation. The causes of deforestation has been classified into subsistence and commercial mode of production and consumption.