How to Become a Environmental Economist

About Environmental Economist

Environmental economists take into account the economics of natural resources, their extraction and use and how the waste products are returned to the environment. They also deal with how economic incentives can help the environment in a positive and negative way and how the incentives can be used for environmental solutions.

Their job primarily involves researching the economics of environmental issues for instance construction of new hydroelectric power plants or renewable energy use etc. They may also at the same time take up the cost-benefit analysis of various industrial activities dealing with natural resources. On the basis of the analysis, they may take decisions and come up with cost-effective and sustainable policies which they communicate to the policymakers in the form of presentations and reports.

These people are responsible for the following:

• Analysing historical data to form economic theories to understand the current circumstances

• Look at how an environmental trend or cycle can predict information about future trends

• Undertake research on the basis of sample findings and literature reviews

• Have discussions with the policymakers regarding economic pressures that lead to companies and people following the norms or abiding by the regulations

• Make predictions by collecting and analyzing historical economic information

• Look at changing some of the economic incentives so that people behave a bit differently or change their approach to environmental issues

• Make reports regarding their findings

• Engage with industrialists, policymakers and other stakeholders

• Offer consultation to agencies, researchers and other professionals regarding environmental economy perspective 

An expert in finance who focuses on the interrelationships between the environment and the economy is known as an environmental economist. Most environmental economists hold degrees in one or both of these fields or have prior experience in one or both, as this position typically requires extensive environmental knowledge and economics expertise. You might succeed in a career as an environmental economist if you have a background in finance or statistics and are interested in environmental sustainability. They are responsible for collecting fresh information on economic and environmental policy, predicting how future environmental sustainability trends will impact the economy, putting new economic measures in place to support environmental sustainability, creating financial incentives to motivate people to contribute to environmental sustainability. 

Also, reading reviews of the literature to discover fresh information about advancements in environmental sustainability and developing new theories to explain how economic behaviour relates to the environment by studying historical data. Lastly, there job also requires estimating the economic value of a specific sector or business's operations

Eligibility to become Environmental Economist

To pursue a career in the field of environmental economics, you will need an economics/environmental science major. You’ll also need to study physics, chemistry, biology, geology, and any other related applied sciences. It is also important for an environmental economist to have an understanding of statistics.

You can also opt for a course that focuses specifically on environmental economics such as Bachelor of Science in Environmental Economics and Policy and depending on your interest and for career advancement, you can also go for a master’s or doctoral degree.

Steps to become Environmental Economists

The following steps must be taken to become an Environmental Economist:

Step 1: Getting a bachelor's degree is the first step to becoming an environmental economist. This is due to the fact that, although the majority of professionals in this position hold advanced degrees, the position typically only requires a bachelor's degree as a prerequisite. 

Most aspiring environmental economists choose economics as their major in order to study in-depth financial subjects and gain experience with various statistical modelling techniques. Taking courses on sustainability and the environment can also be helpful if you want to start understanding how the economy and the environment are related.

Step 2: Acquire a graduate degree, since their work typically entails examining advanced economic and environmental concepts, most environmental economists hold advanced degrees. Since master's programmes can typically be finished in two to three years and allow students to enter the field quickly, some professionals in this position may choose to enrol in them. 

Environmental economists may also frequently hold doctoral degrees, typically in environmental economics or a closely related field. An aspiring environmental economist might research topics like how industrial activity affects various types of environments and how environmental policies can affect the economy while pursuing an advanced degree.

Step 3: Acquire work experience, it may be advantageous to begin acquiring professional experience in economics after receiving an advanced degree. This is so that candidates can be sure they can comprehend the complex ideas and job responsibilities related to the position, which is why the majority of employers of environmental economists require candidates to have prior experience in the field. 

You can apply for entry-level economist positions at companies that employ teams of economists to gain experience. As a research analyst or consultant, you can also look for employment in environmental sustainability, which can help you advance your knowledge of the most recent environmental techniques.

Step 4: Job applications for environmental economists are encouraged. After a few years of professional experience, you can begin looking for employment as an environmental economist. The government employs a large number of environmental economists, whether in federal or state-run organisations. These specialists typically work on initiatives like reviewing current economic and environmental policies and enacting new ones. 

Financial institutions and environmental consulting firms both employ environmental economists. You can contact businesses you already know to inquire about openings for environmental economists or carry out a personal online search to find employment opportunities.

Step 5: Engage in a professional organisation. Environmental economists can join a variety of professional organisations. When you first start out in the field, joining an organisation can provide you with opportunities to access exclusive job listings and expand your professional network. 

Some professional organisations for environmental economists also provide members with work resources such as academic journals and digital literature databases. The Association of Environmental and Resources Economists (AERE) and the American Economic Association are two of the most popular organisations for these professionals to join (AEA).

Courses to become Environmental Economists

A degree in environmental science will give you the theoretical and practical knowledge needed to be registered as a professional. Being a specialty degree that combines physiology, ecology, and life science, the course will put a special emphasis on fauna, flora, and biodiversity. Candidates who want to work as environmental economists or do research in the future should take this course. The specialisation course is offered by a number of colleges for bachelor's, master's, certificate, and doctoral degrees.
 

• Depending on the degree, bachelor's courses last three to four years
• Like other courses, the master's programmes last for two years
• Most Certification programmes last between six months and a year
• Environment and Development, Environmental Economics, Policies, and Sustainable Development are some of the main topics covered in environmental science courses
• The fee of the course varies depending on the type of institution, i.e. government or private, from INR 1,50,000 - INR 3,00,000

Types of Job Roles Environmental Economist

The following job profiles exist in the field of environmental economics:

Ecological Economist-Ecological Economists address the relationship between ecosystems and economic systems.

Energy Economist-An Energy Economist’s job is to focus on energy as the area of study, prediction, and analysis.

Marine Resource Economist-A Marine Resource Economist deals with the economic aspects of marine management, water quality management, seafood marketing and the impact of coastal industry activities.

Natural Resource Economist-Natural Resource economist focuses on the demand, supply, and allocation of the earth’s natural resources.

Agricultural Economist-Agricultural Economist is a specialist in understanding the economic activity within agricultural markets.

Principal Research Economist-Principal Research Economist leads and contributes to the analytical work which focuses on the macroeconomic issues.

Chief Economist-Chief Economist is responsible for the development and production of financial analysis. It is a broad field which includes planning and coordination pertaining to economic research. 

Employment Opportunities for Environmental Economists

While earlier environmental economists were being employed with the government or in scientific, professional and technical services. Now, there are large consulting firms which are hiring environmental economists where the role of the economists is to assess the environmental and financial costs of development projects.

Environmental economists may also be employed as project managers for various development projects and such a role may also involve travel abroad.

Top Recruiting Companies for Environmental Economists

• Indian Council for Research on International Economic Relations
• World Bank
• Asian Development Bank
• Ministry of Economic Affairs
• National Council for Applied Economic Research
• TERI-The Energy and Resources Institute
• McKinsey & Company

Skills Required to become an Environmental Economist 

Recruiters are constantly looking for candidates who are knowledgeable about the most recent environmental science research and market trends. It is crucial to have a thorough understanding of the subject.

To be the best environmental economists, you must have the following abilities:

• A thorough understanding of economics and environmental regulations
• Outstanding verbal and written communication abilities
• Extensive understanding of research techniques
• Outstanding analytical and problem-solving abilities
• Ability to clearly communicate research findings
• Excellent attention to detail and organisation
• Capable of using Microsoft Office or comparable programmes

Pay Scale/Salary of Environmental Economist

The starting salary for an environmental economist is approximately Rs. 6, 15,437 per year.

Note: The above figures are an estimate and may vary from individual to individual and company to company.

Career Path for Environmental Economists

The Environmental Economist could very well conduct research on the financial impacts of corporate actions and government regulations, publishing and presenting findings, conclusions, and suggestions. The median income for all economists in 2020 was INR 88,53,3002, and environmental economists can expect to make a comfortable living. 

Currently, the majority of environmental economists work for the federal or state governments. Even though these positions are anticipated to disappear, economists' overall employment is anticipated to increase by 13% between 2020 and 2030. To estimate and reduce project costs, some environmental consulting firms employ economists. They might also serve as project managers for environmental nonprofits and consulting firms.

Books & Study Material to Become Environmental Economist

Some good books to refer to in the field of environmental economics are:

• Environmental Economics: An Indian Perspective by Rabindranath Bhattacharya

• Intermediate Environmental Economics by Charles D Kolstad

• Environmental Economics: Theory and Applications by Katar Singh

• Environmental and Natural Resource Economics by Tom Tietenberg and Lynne Lewis

• Public Policies for Environmental Protection by PR Portney

• Economics of Environment by Subhashini Muthukrishnan

• Environmental Economics by A N Sarkar

• Frontiers of Environmental Input-Output Analysis by Shigemi Kagawa

Pros of becoming a Environmental Economist

• It is an interesting field as you will be constantly learning new things and will be involved in a lot of research
• Economics as a field is very diverse and you can think of getting into marine resource economics or agricultural economics or some other related field
• You will get to learn so many valuable skills as studying economics will help you understand how people live and how they are impacting the environment. It is about studying the choices people make and analyzing the reasons behind their choices.
• It is also associated with prestige because it requires a high level of intellect and that is valued by society.
• Being an environmental economist is lucrative. Environmental economists also have an option of earning extra by writing books or articles.

Cons of becoming a Environmental Economist

One of the drawbacks of being in this field is that you may be prone to think too theoretically.

You may also get into the habit of overthinking facts too often.

This field of environmental economics can be too competitive at times.

The work hours can be too long and at times, you may have to work over the weekends too.

The work environment can be too stressful at times as there may be a lot of work pressure and preparing reports and presentations may seem a bit tedious.