Description of Subtheme:

Environmental economics focuses on the impact of economic activities on the environment and its implications for firms, industries, and the economy as a whole. It aims to maintain a balance between economic development and environmental quality by exploring socio-economic possibilities to reduce pollution and uplift the standard of living. Economists have formulated economy-environment models to explain the various economic activities and their external effects.

The principal objective of environmental economics is to strike a balance between economic development and environmental quality. To achieve this, environmental economists investigate diverse socio-economic strategies aimed at reducing pollution and improving the standard of living. This objective gained prominence following the publication of the Report on Limits to Growth.

Environmental economics aims to tackle environmental problems from an economic welfare framework. The welfare framework covers scarce resources and market failures due to property rights and ethical aspects of different problems of pollution. Thus, it suggests the best possible means to tackle the environmental problems. Environmental issues are about resources. The neo-classical economists have analyzed the use of various resources like fisheries, forests, fossil fuels and water in a rational manner and with environmental values. In fact, environmental values are economic values. It is important for the society to conserve its limited resources in the interest of economic efficiency and welfare.

Currently, environmental pollution is primarily attributed to the misuse of existing technologies and the lack of development of superior alternatives. Environmental economists advocate for the adoption of appropriate and clean technologies that ensure optimal use of economic resources, energy efficiency, and environmental protection. Environmental economics is inherently interdisciplinary, integrating diverse fields such as biology, ecology, physical sciences, ethics, and mainstream economics.

Research Action Plans:

Conduct studies on the impact of economic activities on the environment, develop models for balancing economic development with environmental preservation, explore socio-economic strategies for reducing pollution, and promote the use of clean technologies. This subtheme aligns with two SDGs. The first is SDG 12 (Responsible Consumption and Production). The SDG 12 goal emphasizes sustainable management and efficient use of natural resources, reducing waste generation, and promoting sustainable practices among businesses. Research under this subtheme contributes by developing models and strategies to achieve these objectives, ultimately leading to more sustainable production and consumption patterns. Second SDG 13 (Climate Action). The SDG 13 goal calls for urgent action to combat climate change and its impacts. By focusing on environmental economics, this subtheme addresses the economic factors contributing to climate change, promotes clean technologies, and develops policies to mitigate environmental degradation, aligning closely with the aims of SDG 13.