It is based on scientific facts. It is to say that there is hypothesis and deductivism for each theory. The theory believes that efficiency can be brought by allowing the trade. Resources are part of the production unit where environmental quality is taken as a constraint. Since environmental quality is taken as constraint, it calculates the effect of using environmental constraint to welfare change.
Economic analysis is done using benefit cost analysis.
Neoclassical model focus on the profit maximizing behavior of a firm. When societal working rules are not under serious debate and improving the efficiency of a given system is desired. Institutionalist try to merge politics and economics and use the merger to shape values and political infrastructure. They do not consider environmental quality as a constraint rather as an additional variable in a decision making. Institutionalist want people to decide over the resource use issues.