An online master's in Applied Economics prepares you for real-world economic analysis and policy work, with growing opportunities in environmental economics. Applied Economics focuses on practical application rather than theory, making it ideal for careers in sustainability, climate policy, and natural resource management.
Economics graduates don't just work in business-they also work in healthcare, labor, agriculture, education, and increasingly, the environmental sector. Environmental economists apply economic principles to sustainability challenges, helping organizations balance financial and ecological goals.
Applied Economics differs from traditional economics by emphasizing real-world problem-solving over theoretical research, making it particularly valuable for addressing today's sustainability challenges.
What Is Applied Economics?
Applied Economics examines how economic principles operate in actual markets, organizations, and policy decisions. Rather than developing new economic theories, applied economists use existing frameworks to solve practical problems-from analyzing the impacts of climate policy to optimizing resource allocation in conservation programs.
Master's degrees in Applied Economics prepare you to examine relationships between economic activity, public policy, environmental planning, and sustainability issues. You'll study the economics of natural resource use, climate change mitigation, population growth, and global trade in corporate, government, and nonprofit roles.
Environmental economics-a specialization within the broader field of economics-has emerged as one of the fastest-growing areas. Globalization, disruptive technologies, environmental challenges, and the growth of sustainable energy are driving significant changes in national and global markets, making economists who understand these intersections increasingly valuable.
Applied Economics vs. Economics: Key Differences
Understanding the distinction helps you choose the right graduate path for your career goals.
| Aspect | Applied Economics | Standard Economics |
|---|---|---|
| Primary Focus | Real-world problem-solving and policy implementation | Economic theory development and academic research |
| Career Path | Industry, government agencies, consulting, nonprofits | Academic research, PhD programs, university teaching |
| Coursework Emphasis | Econometrics, data analysis, case studies, policy evaluation | Mathematical modeling, theoretical frameworks, and research methods |
| Thesis/Capstone | Applied project addressing real-world problems | Original research contributing to economic theory |
| Terminal Degree | A master's prepares you for most career roles | PhD is typically required for intended career paths |
Choose Applied Economics if you want to use economics in your career immediately after graduation. Choose standard Economics if you're interested in academic research or plan to pursue a PhD.
Environmental Economics Career Pathways
Environmental economics is a specialization you can pursue through an Applied Economics master's program. Environmental economists apply economic principles to environmental challenges, helping organizations balance financial sustainability with ecological responsibility.
This specialization is experiencing significant growth as climate change, resource scarcity, and sustainability regulations reshape business and policy landscapes. Many industry analysts anticipate faster growth in environmental economics than in general economics, driven by expanding climate policy requirements, the development of carbon markets, and corporate sustainability reporting mandates.
What Environmental Economists Do
Environmental economists analyze the financial implications of environmental decisions. They assess the ecological impacts of proposed projects, evaluate the economics of renewable energy investments, develop carbon pricing models, and assess the economic benefits of conservation programs.
Their work influences corporate sustainability strategies, government environmental policies, and international climate agreements. You might work on climate policy for federal agencies, conduct cost-benefit analyses for renewable energy companies, value ecosystem services for conservation organizations, or advise corporations on sustainability ecoUScs.
The U.S. Environmental Protection Agency, the Department of Energy, the World Bank, the United Nations, consulting firms, and major corporations all employ environmental economists.
Specialized Areas in Environmental Economics
Climate Economics: Analyze the costs of climate change and the economics of mitigation strategies like carbon taxes and cap-and-trade systems.
Natural Resource Valuation: Determine the economic value of forests, wetlands, clean air, and biodiversity for conservation decision-making.
Renewable Energy Economics: Evaluate the financial viability of solar, wind, and other alternative energy projects relative to traditional energy sources.
Sustainability Policy Analysis: Assess the economic impacts of environmental regulations and develop market-based solutions to pollution problems.
Circular Economy: Study the economics of waste reduction, recycling systems, and resource efficiency in production.
Choosing an Online Applied Economics Program
Online study provides flexibility for working professionals and those with family responsibilities. The practical nature of Applied Economics-focusing on real-world examples rather than pure theory-translates well to online formats. You can study while maintaining your current position, apply concepts immediately in your work, and build a professional network through virtual collaboration.
However, online programs require discipline and self-motivation. You'll need reliable technology, a dedicated study space, and strong time management skills.
Consider these factors when evaluating programs:
Program History and Reputation: Ask how long the institution has offered graduate programs in economics and whether it offers specific concentrations in environmental economics. Some schools are new to this field, while others have decades of expertise.
Graduation and Employment Rates: Request data on what percentage of students complete the program and how many find employment in their intended field, particularly in environmental sectors.
Career Outcomes: Ask what types of positions graduates typically secure. Do alums work at EPA, consulting firms, renewable energy companies, or international organizations?
Internships and Practical Experience: Some programs offer work placements with environmental organizations, government agencies, or sustainability-focused companies. Ask whether the school facilitates these connections for online students.
Cross-Disciplinary Options: If you're focused on environmental applications, consider taking courses from ecological science, environmental policy, or environmental management programs to build interdisciplinary expertise.
Accreditation: Verify regional accreditation and check for specialized business school accreditation (AACSB) if the program is housed in a business school, as this affects employer recognition.
Is an Online Degree Right for You?
Online graduate study works well for certain situations, but it isn't for everyone. Working from home requires discipline, organizational skills, and a genuine interest in the subject matter. You'll need a dedicated space to analyze complex economic data and policy scenarios without constant interruptions.
You'll need a bachelor's degree in a relevant field. While most master's students have undergraduate degrees in economics, it's not always required. Business degrees, mathematics, statistics, and environmental science can also provide strong foundations.
Requirements vary, but expect minimum GPA requirements (often 3.0 or higher) and possibly GRE or GMAT scores, though some programs have made these test-optional.
Online students sometimes face networking challenges compared to on-campus peers. Ask programs about virtual networking events, alum connections, and access to career services. The most successful online students proactively build relationships with professors and classmates through discussion forums, study groups, and virtual office hours.
What to Expect
Online master's degrees in Applied Economics cover practical rather than theoretical economics. You'll take a hands-on approach to examining business and government processes in local, national, and global markets. Economics is the study of production, consumption, and the transfer of wealth and resources.
You'll study microeconomics (individual decision-making and single-factor analysis), macroeconomics (large-scale performance, such as GDP, and national policy), statistics for economic analysis, and econometrics (measuring economic activity using data). Most programs also offer specialized courses in environmental economics, sustainability economics, climate policy, and natural resource management.
Programs typically take 18-24 months for full-time students or 2-3 years for part-time students. Expect to complete 30-36 credit hours, including core courses, electives, and a capstone project or thesis. Your final project often addresses a real-world problem-analyzing a company's carbon reduction strategy, evaluating a conservation program's cost-effectiveness, or modeling the economic impacts of climate policy.
Applied Economics Topics You'll Study
Most programs require core courses covering essential economic concepts:
Microeconomic Analysis: Consumer behavior, market structures, pricing strategies, and resource allocation decisions. In environmental applications, this includes analyzing pollution externalities and valuing ecosystem services.
Macroeconomic Theory: National income, employment, inflation, fiscal and monetary policy, and international trade. Environmental applications examine how green policies affect economic growth and jobs.
Econometrics and Statistical Methods: Regression analysis, forecasting, data interpretation, and empirical research design. You'll learn to analyze environmental data and evaluate the effectiveness of policies.
Economic Policy Analysis: Cost-benefit analysis, program evaluation, and policy impact assessment-critical skills for environmental economics roles.
Many programs offer two advanced tracks (microeconometrics and macroeconometrics) that you can choose based on your interests. Thematic electives let you specialize in areas like:
- Environmental and Sustainability Economics: Climate change economics, renewable energy markets, pollution control, and conservation finance
- Resource Economics: Forest economics, water resource management, energy economics, and agricultural sustainability
- Health Economics: Environmental health impacts, pollution costs, and public health policy
- International Development: Sustainable development, poverty reduction, and global environmental policy
- Data Analytics: Environmental data analysis, GIS applications in economics, and big data for policy
Your capstone project or thesis counts significantly toward your final grade and often serves as a portfolio piece for job applications.
Applied Economics Professional Organizations
Agricultural and Applied Economics Association: This major organization serves students and professionals in agricultural economics and applied economic analysis. They're a nonprofit working to improve education and standards while engaging in environmental research for sustainable agriculture.
American Economic Association: One of the country's oldest economics organizations, working on a nonpartisan framework to advance the economics discipline. They offer professional development programs and publish leading academic journals.
International Association of Agricultural Economists: A global organization examining agriculture's role in economics, environment, and society. They facilitate connections among stakeholders concerned with agricultural sustainability and food systems.
USDA Economic Research Service: A division of the US Department of Agriculture providing statistical data and analysis on agricultural production. Founded in 1863, the ERS models agricultural data for federal policy-making.
Tuition Cost Estimates
Graduate program costs vary significantly based on whether you're an in-state resident, out-of-state student, or international applicant. More prestigious institutions typically charge higher tuition.
Based on current data, in-state students at public universities can expect to pay approximately $20,000-$30,000 for full tuition, while out-of-state students often pay double that amount. Private universities typically charge $50,000-$70,000 for complete programs regardless of residency. Online programs sometimes offer reduced tuition or flat-rate pricing irrespective of location.
Financial aid, assistantships, and scholarships can significantly reduce costs. Many programs offer graduate assistantships that provide tuition waivers plus stipends in exchange for teaching or research assistance. Ask about these opportunities when applying.
Skills You'll Develop
Any master's degree in Applied Economics provides you with analytical tools and practical methods for economic problem-solving. You'll graduate with a solid understanding of economic theory and practice, able to analyze the financial policies and issues debated today.
The skills you develop transfer across sectors:
Data Analysis and Econometrics: Using statistical software (R, Stata, Python) to analyze large datasets, identify trends, and forecast outcomes. Environmental economists use these skills to evaluate policy effectiveness and model climate scenarios.
Cost-Benefit Analysis: Quantifying costs and benefits of projects, policies, or investments-essential for evaluating environmental initiatives and sustainability investments.
Policy Evaluation: Assessing whether programs achieve intended outcomes and recommending improvements. You'll apply this to environmental regulations, conservation programs, and sustainability initiatives.
Economic Modeling: Building models to simulate market behavior, policy impacts, or resource allocation scenarios. Environmental applications include modeling carbon markets, renewable energy adoption, and ecosystem service values.
Research and Communication: Conducting rigorous empirical research and communicating complex findings to non-economists through reports, presentations, and policy briefs.
Career Paths and Employment
All sectors-government, private industry, and nonprofits-require economists. The skills you learn are flexible and transferable across industries. Most opportunities for new graduates are in government, particularly federal agencies, though state and local governments also regularly hire economists.
Many economists work independently through scientific and technical consulting services, either at consulting firms or as freelancers-a growing number work in scientific research, with environmental economics becoming a key area of demand. Finance and insurance remain a large and reliable employer, though sustainability-focused roles are expanding faster than traditional finance positions.
Environmental Economics Roles
Environmental economists work toward financial and ecological sustainability. They're involved in project costing while understanding the environmental impact of each financial decision.
When working for nonprofit organizations, environmental economists typically analyze the costs and benefits of proposed laws, regulations, and alternative energy sources. Some work on sustainable development projects for UNICEF, the World Bank, and U.S. Aid. These roles may require regular international travel.
Corporate environmental economists advise companies on sustainability strategies, renewable energy investments, supply chain optimization, and regulatory compliance. Technology companies, energy firms, and manufacturing corporations increasingly employ economists to navigate the transition to low-carbon operations.
Government roles include the Environmental Protection Agency (policy analysis and program evaluation), Department of Energy (renewable energy economics), USDA (agricultural sustainability), and state environmental agencies (regional policy development).
Salary and Job Outlook
Each role has slightly different requirements. Most economists require a master's degree at minimum, with senior positions (particularly in international organizations like USAID and the United Nations) often requiring a doctorate.
As of May 2024, the median annual salary for economists was $115,730 according to the Bureau of Labor Statistics. Salaries vary significantly by employment sector within the economist occupation. Environmental economists working in scientific research and development services earned a median of $108,490, while those in federal government executive branch roles averaged $125,950. The highest-paying sector remains finance and insurance, with median salaries around $170,000.
The U.S. Bureau of Labor Statistics projects 6% job growth for economists between 2023 and 2033, adding approximately 1,200 new positions annually. Many industry analysts anticipate faster growth in environmental economics roles due to increased focus on climate policy, carbon markets, renewable energy investments, and corporate sustainability reporting requirements.
Frequently Asked Questions
Can I pursue environmental economics with an Applied Economics degree?
Yes, Applied Economics provides an excellent foundation for careers in environmental economics. Most programs offer ecological economics as a concentration or specialization through elective courses in climate policy, natural resource economics, and sustainability. You can also take classes from environmental science or policy programs to build interdisciplinary expertise. After graduation, you'll be qualified for environmental economist roles in government, consulting, nonprofits, and corporations focused on sustainability.
What's the difference between Applied Economics and Environmental Economics?
Applied Economics is a broad field focusing on practical economic problem-solving across many sectors. Environmental economics is a specialization within economics (whether applied or theoretical) that examines explicitly economic aspects of environmental issues. An Applied Economics degree with environmental electives prepares you for roles in environmental economics. Some universities offer dedicated environmental economics programs that integrate more ecological science and conservation biology alongside economic training.
Do I need an undergraduate degree in economics?
Not necessarily, though it helps. Most programs accept students with bachelor's degrees in related fields like business, mathematics, statistics, environmental science, or public policy. You'll likely need some undergraduate coursework in calculus and statistics. Programs often require prerequisite courses if your background lacks certain fundamentals. Check specific program requirements, as flexibility varies by school.
How long does an online master's in Applied Economics take?
Most programs require 18-24 months for full-time students and 2-3 years for part-time enrollment. You'll complete 30-36 credit hours, including core courses, electives, and a capstone project or thesis. Online formats often offer flexible scheduling, allowing you to adjust pace based on work and personal commitments while maintaining continuous enrollment.
What career options exist outside of environmental economics?
Applied Economics opens diverse career paths across sectors. You can work as a policy analyst for government agencies, a labor economist studying employment and wages, a health economist evaluating healthcare policies, a financial analyst for banks and investment firms, a data analyst for technology companies, an international development economist for NGOs, or a market research analyst for corporations. The analytical and research skills you develop transfer across industries, making Applied Economics one of the more versatile graduate degrees.
Key Takeaways
- Practical Focus: Applied Economics emphasizes real-world problem-solving over theory, preparing you for immediate career entry in government, business, nonprofits, and environmental organizations rather than academic research.
- Environmental Opportunities: Environmental economics is a fast-growing specialization within economics, addressing climate change, renewable energy, carbon markets, and sustainability policy. Economists in environmental sectors earn median salaries of $108,490-$125,950 depending on employer type.
- Program Flexibility: Online master's programs typically require 18-24 months full-time and allow you to specialize through electives in environmental economics, resource management, climate policy, or sustainable development while maintaining your current employment.
- Transferable Skills: You'll develop expertise in econometrics, cost-benefit analysis, policy evaluation, and data analysis-skills that transfer across industries from environmental consulting to healthcare economics to financial analysis.
- Strong Job Growth: Economists face 6% job growth through 2033, with environmental economics anticipated to grow faster due to increased climate policy focus and corporate sustainability requirements. A master's degree qualifies you for most positions.
Ready to combine your interest in economics with environmental impact? Explore accredited online Applied Economics programs that can launch your career in environmental economics and sustainability.
2024 US Bureau of Labor Statistics salary and job growth figures for Economists reflect state and national data, not school-specific information. Conditions in your area may vary. Data accessed January 2026.
