Environmental Economists

Salary Overview

Job Outlook (2024–2034)

Key Skills

Knowledge Areas

What They Do

• Write technical documents or academic articles to communicate study results or economic forecasts.
• Conduct research on economic and environmental topics, such as alternative fuel use, public and private land use, soil conservation, air and water pollution control, and endangered species protection.
• Collect and analyze data to compare the environmental implications of economic policy or practice alternatives.
• Assess the costs and benefits of various activities, policies, or regulations that affect the environment or natural resource stocks.
• Prepare and deliver presentations to communicate economic and environmental study results, to present policy recommendations, or to raise awareness of environmental consequences.
• Develop programs or policy recommendations to achieve environmental goals in cost-effective ways.
• Develop economic models, forecasts, or scenarios to predict future economic and environmental outcomes.
• Demonstrate or promote the economic benefits of sound environmental regulations.

Tools & Technology

★ = Hot Technology (in-demand)

Education Requirements

Typical entry-level education: Related Work Experience

Related Careers

Careers with the highest skill compatibility from Environmental Economists.

A Day in the Life

A typical day for an environmental economist involves a blend of quantitative research, policy analysis, and stakeholder engagement. The morning might begin with reviewing economic datasets on carbon markets, natural resource extraction rates, or pollution abatement costs using statistical software such as R, Stata, or Python. Economists develop and refine econometric models to estimate the economic impact of proposed environmental regulations, trade policies, or conservation programs. Midday often brings meetings with interdisciplinary teams—environmental scientists, policy advisors, and government officials—to discuss research findings and their implications for decision-making. Writing is a central activity, as economists produce research papers, policy briefs, executive summaries, and regulatory impact analyses that communicate complex findings to diverse audiences. They review academic literature to stay current on theoretical advances and empirical methodologies in environmental and resource economics. Presentations to agency leadership, legislative committees, or international bodies require clear visualization of data and persuasive communication of economic trade-offs. The day may conclude with peer review activities, mentoring junior analysts, or responding to requests for economic data from journalists and advocacy organizations.

Work Environment

Environmental economists primarily work in office-based or academic settings, though fieldwork may be required for data collection, site assessments, or community consultations. The work atmosphere is intellectually stimulating, with a strong emphasis on independent research, critical thinking, and interdisciplinary collaboration. Government economists typically work standard 40-hour weeks with predictable schedules, while academic and consulting economists may have more variable hours driven by publication deadlines, client deliverables, or legislative timelines. Remote work opportunities are increasingly available, as much of the analysis and writing can be performed from any location with reliable internet access. Professional conferences, both domestic and international, are important networking and dissemination venues, requiring periodic travel. The culture tends to be collegial and mission-oriented in government and nonprofit settings, and more competitive in academia where tenure pressures shape priorities. Access to specialized databases, computing resources, and statistical software is standard, and many employers invest in ongoing professional development.

Career Path & Advancement

Becoming an environmental economist typically requires a master's degree or Ph.D. in economics, environmental economics, or agricultural and resource economics, though some entry-level analyst positions accept candidates with a bachelor's degree and strong quantitative skills. Graduate programs emphasize microeconomic theory, econometrics, cost-benefit analysis, and environmental policy, with research opportunities that build specialized expertise. Early-career economists often begin as research assistants or junior analysts at government agencies like the EPA, Department of Energy, or Congressional Budget Office. With experience, they advance to senior economist, lead analyst, or research director positions, taking on greater responsibility for shaping policy recommendations and managing research programs. Those in academia progress through assistant, associate, and full professor ranks, pursuing tenure through published research and grant funding. Private-sector career paths include roles at consulting firms, financial institutions, and energy companies, where senior economists guide corporate sustainability strategies and regulatory compliance. International organizations such as the World Bank, OECD, and United Nations agencies also hire environmental economists for global development and climate policy work.

Specializations

Environmental economics encompasses a rich array of sub-specializations, each addressing different facets of the relationship between economic activity and the natural world. Climate economists focus on modeling the economic impacts of climate change, evaluating carbon pricing mechanisms, and assessing the costs of adaptation and mitigation strategies. Energy economists analyze markets for fossil fuels, renewables, and electricity, evaluating policy instruments like subsidies, tariffs, and emissions trading systems. Natural resource economists study the sustainable management of forests, fisheries, water, and mineral resources, applying models that balance extraction with conservation. Ecosystem services economists quantify the economic value of biodiversity, wetlands, pollination, and other ecological functions to inform land-use decisions. Environmental health economists examine the economic burden of pollution-related illness and the cost-effectiveness of public health interventions. Behavioral environmental economists explore how psychological factors influence environmental decision-making and design nudges to promote sustainable behavior. Trade and environment economists investigate the environmental consequences of international commerce and evaluate the effectiveness of environmental provisions in trade agreements.

Pros & Cons

Industry Insight

Environmental economics is experiencing a surge in demand as governments and corporations intensify their responses to climate change, biodiversity loss, and pollution. Carbon pricing mechanisms, including emissions trading systems and carbon taxes, are expanding globally, creating growing demand for economists who can design and evaluate these market-based instruments. The integration of environmental, social, and governance criteria into investment decisions is driving private-sector hiring of economists who can quantify environmental risks and opportunities. Advances in computational methods, machine learning, and remote sensing data are enabling more sophisticated and granular economic analyses than ever before. The field is also grappling with questions of environmental justice, examining how pollution and climate impacts disproportionately affect marginalized communities and how policy can address these inequities. International climate negotiations and biodiversity frameworks are creating demand for economists who can model global cooperation scenarios and evaluate burden-sharing mechanisms. Natural capital accounting—incorporating the value of ecosystems into national economic statistics—is gaining momentum as a framework for more holistic economic planning.