Environmental economics programs range from undergraduate majors to doctoral degrees, focusing on market-based solutions to environmental challenges. These interdisciplinary programs combine economics, policy analysis, and environmental science. Economists working on environmental issues earn a median salary of $115,440 annually, with experienced professionals earning $212,710 or more. Overall economist employment is projected to grow 1% through 2034, with approximately 900 job openings annually across all economics specializations.
Environmental economics tackles one of our era's most pressing questions: How do we balance economic growth with planetary health? This interdisciplinary field combines the analytical tools of economics with environmental science to value ecosystem services, assess pollution costs, and design market-based conservation strategies. Whether you're passionate about climate policy, natural resource management, or sustainable development, understanding your degree options is the first step toward making an impact.
This guide outlines degree pathways from bachelor's through doctoral programs, helping you understand which level aligns with your career goals-whether you're interested in policy analysis, resource management research, or environmental consulting. We'll cover admission requirements, program types, career outcomes, and how to choose the right path for your unique interests and circumstances.
Why an Environmental Economics Degree?
Environmental economics is an area of economics dealing with the relationship between the economy, the earth's systems, and its limited resource base. Economic systems exist within the confines of the closed Earth system. Rather than considering economic systems in isolation, environmental economics studies economics within the larger context of what we know about the world from science and other disciplines.
Environmental economists research the economics of resource use, perform cost-benefit analyses of environmental regulations and other pollution control measures, and assess new fuels and emerging environmental markets. They attempt to assign value to "ecosystem services" such as natural water and air filtration. This work directly informs policy decisions that affect millions of people and shape how society addresses everything from climate change to local water quality.
How to Choose the Right Environmental Economics Program
Selecting an environmental economics program requires understanding the distinction between science-focused and policy-focused approaches. Some programs, particularly those offered by colleges of natural resources or environmental science departments, emphasize the scientific aspects of environmental problems. These programs typically require substantial coursework in ecology, chemistry, and earth sciences alongside economics. Other programs, usually housed in economics departments, focus more heavily on policy analysis, econometrics, and economic theory with environmental applications.
Consider your career goals when evaluating programs. If you're interested in field research, ecosystem valuation, or working for environmental agencies on technical assessments, a science-heavy program makes sense. If you're drawn to policy analysis, legislative work, or economic consulting on environmental regulations, a policy-focused economics program may be the better fit. Many professionals in this field find success with either approach-what matters most is aligning the program structure with your interests and strengths.
Also consider whether you need a terminal degree for your goals. While some government positions are available to workers with bachelor's degrees, most professional environmental economist roles require graduate education. A master's degree typically suffices for consulting work, policy analysis, and many government positions. Doctoral programs are essential for academic careers, high-level research positions, and certain specialized federal roles. Certificate programs work well for professionals already working in adjacent fields who want to add environmental economics credentials without pursuing a full degree.
Environmental Economics vs. Ecological Economics: Understanding the Difference
These two related fields often cause confusion for prospective students. While both address economic and environmental interactions, they differ fundamentally in philosophy and methodology.
| Aspect | Environmental Economics | Ecological Economics |
|---|---|---|
| Philosophical Foundation | Views the economy as the primary system; the environment as an external factor requiring valuation | Views the economy as embedded within a larger ecosystem; emphasizes biophysical limits |
| Primary Methods | Market-based analysis, cost-benefit analysis, and econometric modeling | Interdisciplinary integration, systems thinking, and alternative valuation methods |
| Typical Solutions | Carbon taxes, cap-and-trade, ecosystem service markets, optimal pollution levels | Sustainability metrics, steady-state economics, non-market value recognition, and absolute limits |
| Academic Discipline | A branch of traditional economics, taught in economics departments | An interdisciplinary field, often taught through environmental studies or specialized programs |
| Career Paths | Government policy analyst, regulatory economist, environmental consultant, corporate sustainability analyst | Research institutions, NGOs, alternative economic think tanks, and sustainability-focused organizations |
Both approaches prepare students for meaningful careers addressing environmental challenges. Environmental economics programs typically emphasize quantitative skills and mainstream economic theory, while ecological economics programs stress interdisciplinary collaboration and alternative paradigms. Your choice should depend on which philosophical approach resonates with your worldview and which career paths interest you most.
Comparing Degree Levels
| Degree Level | Time to Complete | Career Outcomes | Typical Cost Range | Best For |
|---|---|---|---|---|
| Bachelor's Degree | 4 years full-time | Entry-level analyst positions, research assistant roles, or a foundation for graduate study | $40,000-$200,000+ (varies widely by institution) | Students exploring environmental economics as an undergraduate major or building foundations for graduate school |
| Graduate Certificate | 6-18 months part-time | Career advancement in the current field, credential enhancement for adjacent professionals | $8,000-$25,000 | Working professionals in environmental science, engineering, or policy seeking to add economics expertise |
| Master's Degree | 1.5-2 years full-time | Environmental economist, policy analyst, consulting roles, government positions, NGO leadership | $30,000-$120,000+ | Career changers and those seeking professional environmental economics positions |
| Doctoral Degree (PhD) | 4-7 years full-time | University faculty, senior government research positions, advanced policy research, and think tank leadership | Often funded through assistantships and fellowships | Those committed to academic careers, independent research, or the highest level of expertise in the field |
Environmental Economics Undergraduate Programs
Undergraduate study provides essential foundations for environmental economics careers, though most professional positions require graduate education. Coursework is largely quantitative, focusing on math and statistics. Students also learn how to use computer software to create economic models. They may also study environmental law and policy. Taking physical and life science courses is also recommended for students interested in the scientific dimensions of environmental problems. Seeking out internships and volunteer opportunities that provide practical experience will be advantageous when it comes to employment.
Environmental economics undergraduate majors are offered at numerous institutions, with standalone degree programs verified at UC Berkeley, Oregon State University, University of Georgia, University of Rhode Island, University of Delaware, Colorado State University, and others. Program names vary considerably; Environmental Economics and Policy, Environmental Economics & Management, Environmental and Resource Economics, Natural Resource Economics, or Ecological Economics are equivalent degree programs with different names. Some programs are also available through online or hybrid formats-notably, Oregon State University and Colorado State University offer their environmental economics bachelor's programs fully online, providing flexibility for students who need to balance coursework with work or family responsibilities.
In addition, a few schools, such as UC Berkeley and Ohio State University, offer minors in environmental economics. Some generalized undergraduate programs in economics also offer elective courses in environmental economics, allowing students to explore the field without committing to a full major. This can be a strategic approach for students who want to combine environmental economics with another major like environmental science or public policy.
School Spotlight
University of California, Berkeley's major in Environmental Economics and Policy (EEP) focuses on the market forces shaping the use of renewable and non-renewable resources, and how policy and law affects them. This interdisciplinary program is offered by both the College of Natural Resources (BS) and the College of Letters and Science (BA). Berkeley's program is based on micro-economic theory and emphasizes quantitative analysis alongside policy applications. The program has strong connections to California environmental agencies and nonprofit organizations, providing networking opportunities for students.
Colorado State University's Environmental and Natural Resource Economics degree provides a strong basis in applied economic tools, data gathering, and analysis. To further their interdisciplinary studies and obtain a fuller understanding of the interactions between science and social science, students can pursue a double-major by adding a major in Natural Resource Management from the Warner College of Natural Resources. This combination prepares students particularly well for careers in western water management and rangeland economics. The program is also available fully online for students who need flexible scheduling.
Graduate Certificates in Environmental Economics
A graduate certificate in environmental economics can be an excellent choice for those wanting to further their careers by expanding their credentials. It's particularly useful for professionals in adjacent areas, such as environmental science, environmental engineering, environmental biology, or architecture, who would like to move into different roles or managerial positions. Certificate programs typically require 9-18 credit hours and can often be completed part-time while working, making them accessible for career professionals.
Certificate options remain limited but growing. The University of Vermont's Graduate Certificate in Ecological Economics teaches students how to integrate economics within the context of the world's ecosystems and resource base from both theoretical and pragmatic perspectives. This 15-credit program is available fully online in an asynchronous format, making it one of the most accessible options for working professionals. Students must demonstrate competency in natural science, social science, management, and quantitative methods. Competency in two of these areas must be demonstrated for admission to the certification program, either through prior graduate coursework or life experience. Provisional admission is also possible for candidates with strong potential who need to build additional competencies. Arizona State University also offers an Environmental and Sustainability Economics Graduate Certificate, though this program requires in-person attendance and concurrent enrollment in another graduate degree program.
Master's Degrees in Environmental Economics
Graduate-level study is often required for careers in environmental economics and represents the most common terminal degree in the field. It generally involves a greater focus on applied economics, including quantitative research and analytics. Due to the interdisciplinary nature of the programs, the coursework involved can vary considerably. Some programs focus mainly on the social science aspects of economics, such as policy and law, while other programs focus on physical and life sciences. In general, aspiring students from scientific fields, or those who wish to enter scientific fields, should seek out programs offered by scientific departments, while those more interested in law and policy should seek out programs offered by departments of economics.
Master's programs typically take 1.5 to 2 years to complete and may offer thesis or non-thesis options. The thesis option is beneficial for students who may later pursue doctoral work or research-intensive careers. Non-thesis options often include applied capstone projects working with real clients, which can provide valuable professional experience and networking connections. Some programs also offer specializations in areas like climate economics, water resource management, or energy policy. While most programs require on-campus attendance, Duke University's Master of Environmental Management (DEL-MEM) offers a hybrid format with primarily online coursework and short residential sessions, providing one of the few flexible master's options in the field.
School Spotlight
Duke University's Environmental Sciences & Policy program combines the physical, biological, and social sciences to study how natural resource policy affects the economic choices of individuals and businesses, and how they in turn affect resource consumption and the environment. It's a highly analytical program that's international in scope, with recent graduate projects examining carbon markets in Southeast Asia and renewable energy policy in Latin America. Duke also offers joint degree options combining environmental economics with law or business administration, and their hybrid DEL-MEM program provides flexibility for working professionals.
The University of Rhode Island's graduate program in Environmental & Natural Resource Economics focuses on coastal and marine resource development and management. For example, courses and faculty study the ecosystem services these resources provide, as well as how economic activity and policies affect water quality and pollution. The program has particular strength in fisheries economics and ocean policy, reflecting Rhode Island's coastal location and maritime heritage.
Doctoral Programs in Environmental Economics
The majority of environmental economists working in senior research positions, academia, and high-level policy roles hold doctoral degrees. Since environmental economics is a largely research-based profession, doctoral degrees are necessary for many specialized jobs. While the number of institutions offering Ph.D. programs specifically in environmental economics is fairly low, some universities offer doctoral programs in economics or related areas, with an emphasis or concentration in environmental or ecological economics. The London School of Economics is also an excellent international choice for students interested in European perspectives on environmental policy.
These doctoral programs involve advanced quantitative work, independent research, and a dissertation. Students typically spend 2-3 years on coursework and comprehensive exams, followed by 2-4 years on dissertation research. Many programs are fully funded through teaching assistantships, research assistantships, or fellowships, making them financially accessible despite the length of study. Doctoral students often have opportunities to co-author publications with faculty, present at conferences, and build the research portfolio necessary for academic or senior research positions.
School Spotlight
The University of Vermont is also an excellent place to pursue a doctoral degree. Students can apply for a fellowship at the Gund Institute for Ecological Economics, an interdisciplinary research center. Students can collaborate with faculty from a range of schools, gaining valuable research experience and variety of perspectives. To study at the Gund, students must first apply to a related school, such as the Rubenstein School of Environment and Natural Resources. Applicants should mention their interest in the Gund PhD Assistantship, along with any faculty they've already been in touch with. The school's faculty will nominate candidates for the Gund Assistantship. Students receive degrees in the home departments of their advisors, allowing for specialization while maintaining interdisciplinary connections.
The Bren School of Environmental Science & Management at the University of California, Santa Barbara offers a Ph.D. program with an emphasis on economics and environmental science (EES). Depending on background and career goals, students are enrolled as doctoral candidates in either the Department of Economics or the Bren School of Environmental Science & Management. Students start their programs with core work in microeconomics and econometrics in their home schools, then move on to the EES portion in the second year. UCSB's program provides a solid foundation in both the scientific and economic aspects of the discipline, preparing graduates for careers bridging these traditionally separate domains.
Admission Requirements for Environmental Economics Programs
Undergraduate admission to environmental economics programs typically requires a strong high school record with particular emphasis on mathematics and science courses. Calculus and statistics are especially important, as economics relies heavily on quantitative analysis. Many programs recommend or require four years of high school math, including calculus. Some competitive programs also prefer to see AP courses in economics, environmental science, or related subjects. Because these programs are interdisciplinary, admissions committees also value demonstrated interest in both environmental issues and economic questions-whether through coursework, extracurricular activities, or relevant work experience.
Graduate program admission is more specialized and competitive. Master's programs typically require a bachelor's degree in economics, environmental science, or a related field. Most programs expect applicants to have completed coursework in calculus, statistics, and intermediate microeconomics as prerequisites. GRE scores are required by many programs, though this requirement has become more flexible at some institutions in recent years. Competitive applicants typically score in the 160+ range on the quantitative section. Letters of recommendation from professors or supervisors who can speak to quantitative abilities and interest in environmental issues are crucial. A clear statement of purpose explaining career goals and why environmental economics is the right path significantly strengthens applications.
Doctoral program admission is highly selective. In addition to the master's-level requirements, PhD programs look for applicants with research potential, strong quantitative skills, and clear research interests that align with faculty expertise. Many successful PhD applicants have already completed a master's degree, though some programs admit exceptional students directly from undergraduate programs. Research experience-whether through a master's thesis, work with professors, or employment in research organizations-is nearly essential. Applicants should identify specific faculty members they want to work with and explain these research connections in their statements of purpose. Most funded PhD positions also require teaching ability, so any teaching or tutoring experience can strengthen an application.
For graduate certificate programs, requirements are typically more flexible. Most require a bachelor's degree and some professional experience in a related field, but prior economics coursework may not be mandatory. These programs are designed for working professionals, so admissions committees value relevant work experience and clear goals for how the certificate will advance the applicant's career. Some programs offer provisional admission for candidates who show promise but need to complete prerequisite coursework.
Employment as an Environmental Economist
Environmental economists work at the intersection of economic analysis and environmental policy, applying quantitative methods to complex environmental challenges. Their work directly shapes how society values natural resources, regulates pollution, and makes decisions about sustainable development. According to the Bureau of Labor Statistics, economists-including those specializing in environmental issues-earned a median annual salary of $115,440 in May 2024. Entry-level professionals in the 10th percentile earn around $62,340, while experienced professionals in the 90th percentile earn $212,710 or more. The mean annual salary is $132,650, reflecting strong compensation potential for those who advance in the field. Federal government economists, who represent a significant portion of environmental economists, earn a median of $141,590.
Specific job titles in this field include Natural Resource Economist, Climate Policy Analyst, Environmental Policy Economist, Ecosystem Services Analyst, and Resource Valuation Specialist. Each role emphasizes different aspects of environmental economics. Natural resource economists often work on fisheries management, forest economics, or water resource allocation. Climate policy analysts evaluate the economic impacts of climate regulations and carbon pricing schemes. Ecosystem services analysts attempt to assign monetary values to benefits like wetland water filtration or forest carbon sequestration. These valuations inform policy decisions about conservation and development.
Most environmental economists work in government agencies. The Environmental Protection Agency (EPA), Department of Agriculture, Department of the Interior, and National Oceanic and Atmospheric Administration (NOAA) are major federal employers. These positions involve conducting regulatory impact analyses, evaluating the costs and benefits of environmental policies, and developing economic models to support agency decision-making. State environmental agencies and public utility commissions also employ environmental economists for similar work at the state level. Government positions typically offer job security, good benefits, and the satisfaction of direct public service, though salaries may be somewhat lower than private sector alternatives in some cases. Federal government positions do offer competitive compensation, with median salaries exceeding $141,000.
The private sector offers growing opportunities, particularly in environmental consulting. Consulting firms hire environmental economists to help corporate clients comply with environmental regulations cost-effectively, evaluate the economic impacts of proposed projects, and develop sustainability strategies. Some economists work for energy companies, helping to evaluate renewable energy investments or carbon offset programs. Environmental nonprofits and think tanks employ economists to conduct policy research, develop advocacy positions based on economic analysis, and communicate findings to policymakers and the public. These positions often allow for greater independence and may align more closely with personal environmental values, though compensation and job security can vary.
Career progression in environmental economics typically involves developing specialized expertise and taking on larger, more complex projects. Entry-level positions focus on data collection, literature review, and supporting senior economists' analyses. Mid-career professionals lead their own projects, manage junior staff, and present findings to clients or agency leadership. Senior environmental economists design major research studies, advise executives or policymakers at the highest levels, and may supervise entire research teams or agency divisions. Overall employment of economists is projected to grow 1 percent from 2024 to 2034, which is slower than average for all occupations. Despite the modest growth rate, approximately 900 job openings for economists are projected annually, primarily from the need to replace workers who retire or transfer to other occupations. For those with the right combination of analytical skills and environmental passion, becoming an environmental economist offers a rewarding career path with genuine impact potential.
Understanding BLS Occupational Classification
It's important to understand how environmental economists are classified in official labor statistics. The Bureau of Labor Statistics classifies environmental economists under the "Economists" occupation (SOC code 19-3011), not under "Environmental Scientists and Specialists" (SOC code 19-2041). This classification is based on methodology, not subject matter. Environmental economists use econometric methods, cost-benefit analysis, and economic modeling to analyze environmental issues, while environmental scientists use laboratory and field methods to study pollution, hazards, and environmental health.
This distinction affects salary expectations and job outlook information. Environmental scientists and specialists earn a median of $80,060 (May 2024), significantly less than the $115,440 median for economists. The job growth projections also differ between these occupations. When researching career prospects for environmental economics, consult the BLS Occupational Outlook Handbook entry for "Economists" rather than "Environmental Scientists" for the most accurate salary and employment data relevant to economics-focused positions.
Core Skills You'll Develop While Studying Environmental Economics
- Quantitative Analysis: Environmental economists develop strong skills in statistics, econometrics, and mathematical modeling. These tools are essential for analyzing complex environmental data, identifying trends, and making predictions about resource use and policy impacts.
- Economic Theory Application: Students learn to apply microeconomic principles to environmental problems, understanding concepts like externalities, market failures, and optimal resource allocation in the context of environmental issues.
- Cost-Benefit Analysis: A core competency involves evaluating the costs and benefits of environmental policies, regulations, and conservation programs. This includes learning to quantify hard-to-measure values like ecosystem services and human health impacts.
- Research and Data Analysis: Environmental economists become proficient in collecting, cleaning, and analyzing large datasets using statistical software like R, Stata, or Python. They learn to design research studies, interpret results, and identify appropriate analytical approaches.
- Policy Evaluation: Students develop the ability to assess existing environmental policies and regulations, determine their effectiveness, and recommend improvements based on economic principles and empirical evidence.
- Written and Oral Communication: Since economists routinely write reports and present findings to policymakers and the public, they must learn to communicate complex economic concepts clearly to diverse audiences. This includes writing technical reports, policy briefs, and public-facing materials.
- Critical Thinking: Economists learn logic and reasoning to identify and weigh the pros and cons of various approaches and solutions to environmental issues. This involves questioning assumptions, evaluating evidence quality, and considering unintended consequences.
- Interdisciplinary Integration: Environmental economics programs teach students to bridge economics with ecology, policy, law, and physical sciences. This skill is crucial for working effectively in teams with scientists, policymakers, and other professionals from different backgrounds.
Frequently Asked Questions
What degree do I need to become an environmental economist?
Most professional environmental economist positions require at least a master's degree in environmental economics, economics with an environmental focus, or a related field like natural resource economics. While some entry-level analyst positions are available with a bachelor's degree, career advancement typically requires graduate education. Doctoral degrees are necessary for academic positions, senior research roles, and some specialized federal positions. Your specific career goals should guide your degree choice.
How long does it take to complete an environmental economics degree?
A bachelor's degree typically takes four years of full-time study. Master's programs usually require 1.5 to 2 years beyond the bachelor's degree. Doctoral programs take 4-7 years after the bachelor's degree, depending on research progress and dissertation completion. Graduate certificates can be completed in 6-18 months, often part-time while working. Total time from high school to professional environmental economist roles typically ranges from 6-8 years including undergraduate and master's work.
What's the difference between environmental economics and ecological economics?
Environmental economics is a branch of traditional economics that applies market-based analysis to environmental problems, viewing the economy as the primary system with environmental considerations as external factors. Ecological economics takes a different approach, viewing the economy as embedded within the larger ecosystem and emphasizing biophysical limits, sustainability, and non-market values. Environmental economics programs typically focus more on policy analysis and market mechanisms, while ecological economics programs emphasize interdisciplinary integration and alternative economic paradigms. Both prepare students for similar careers, though with different philosophical foundations.
Can I study environmental economics online?
Some graduate certificate programs and selected bachelor's programs offer online or hybrid formats. The University of Vermont offers a fully online Graduate Certificate in Ecological Economics, one of the few accredited fully-online options in the field. Duke University's Master of Environmental Management (DEL-MEM) provides a hybrid format with primarily online coursework and short residential sessions. At the undergraduate level, Oregon State University and Colorado State University offer their environmental economics bachelor's programs fully online. However, most master's and doctoral programs require on-campus attendance due to the quantitative, collaborative nature of the coursework and the value of in-person faculty interactions.
What careers are available with an environmental economics degree?
Environmental economics graduates pursue diverse careers, including environmental policy analyst, natural resource economist, climate economist, sustainability consultant, ecosystem services analyst, environmental program manager, and research economist. Employers include federal agencies like the EPA and USDA, state environmental departments, environmental consulting firms, nonprofit organizations, think tanks, universities, and, increasingly, private corporations developing sustainability strategies. The specific career paths available depend on your degree level, specialization, and whether you focus on research, policy, or applied consulting work.
Key Takeaways
- Multiple Undergraduate Options Available: Environmental economics bachelor's programs exist at UC Berkeley, Oregon State, the University of Georgia, and numerous other institutions, with some offering fully online formats for flexibility.
- Graduate Degrees Strongly Preferred: Most professional environmental economist positions require master's or doctoral degrees due to the quantitative and research-intensive nature of the field. A master's degree is the most common terminal credential.
- Choose Programs Based on Career Focus: Programs emphasizing natural sciences suit field research and technical assessment roles, while policy-focused economics programs prepare students for legislative work and consulting. Both approaches lead to successful careers.
- Strong Salary Potential for Economists: Economists specializing in environmental issues earn a median of $115,440 annually, with experienced professionals earning $212,710 or more. Federal government positions offer particularly competitive compensation at $141,590 median salary.
- Steady Career Opportunities Despite Modest Growth: While overall economist employment grows only 1% (2024-2034), approximately 900 annual job openings provide steady career opportunities, primarily from workforce turnover. Government agencies remain the largest employers of environmental economists.
Ready to explore environmental economics programs? Find accredited degree programs that match your career goals and academic interests in this growing field.
2024 US Bureau of Labor Statistics salary and job growth figures for Economists reflect national data, not school-specific information. Environmental economists are classified under the Economists occupation (SOC 19-3011). Conditions in your area may vary. Data accessed January 2026. Learn more about economist careers from the BLS Occupational Outlook Handbook.
