Environmental science has an economics problem

Over the past year, in a volunteer capacity, I have been helping to establish a new organisation for economists: the Association for Quality Economics (AQE). At first glance, that might seem an unusual side project for the CEO of an environmental professional body. However, it reflects a lesson I have learned over two decades working in environmental science.

Many of the environmental challenges we face today are not constrained by a lack of scientific understanding. During my 20 years at the IES, I have witnessed the evidence base strengthen considerably, and the range of practical solutions to environmental issues grow. What we struggle with is implementation.

Countless times, I have seen well-evidenced environmental initiatives run up against economic constraints. An idea with a strong evidence base is developed and policy solutions tested, but is then torpedoed by the Treasury. The economy suffers a downturn, and it is the environmental regulations that are first on the chopping block. Questions of bond markets, financial incentives, market structures, and public spending frequently determine whether environmental solutions succeed or fail. In practice, environmental outcomes are often shaped as much by economic thinking as by scientific evidence.

The origins of AQE can be traced back to a discussion I attended in February 2024 at Windsor House on climate education and skills (meeting report pdf). The discussions weren't constrained to environmental disciplines, and in one of the discussion groups, we ended up talking about business schools and economics degrees. A year later, the CEO of one of the event organisers, SOS-UK, contacted me to say that funding had been secured to establish a new professional body for economists and asked whether I would be interested in helping. Given my longstanding frustrations about the relationship between environmental science and economics, I did not need much persuading.

Why create a new professional body for economists?

Economics has enormous influence over public policy, business decision-making and societal priorities. Yet there is growing concern among students, employers and economists themselves that economics education is not always equipping graduates with the breadth of skills and perspectives needed to tackle modern challenges.

We argue that economics education should better reflect the complexity of the real world, exposing students to a wider range of economic perspectives. We also wanted to strengthen critical thinking and communication skills, and engage more directly with issues such as climate change, inequality and social resilience in the curriculum. Students are demanding that they be taught the skills that will help them navigate and change the world, and we believe the AQE may be the world's first professional body that is explicitly student-led. The organisation's tagline, "Economics that meets the moment", reflects that ambition.

Shifting the dial on economics education (pdf)

The professional body will have all the usual membership services - CPD, publishing articles, providing mentoring, etc - but the central ambition is to create an accreditation framework for ecomonics programmes. The IES, through its education arm CEDHE, runs the largest accreditation scheme of environmental programmes globally. I have seen firsthand the influence that this can have on helping grow the pipeline of suitably qualified graduates and help nudge universities to embed desirable elements into their programmes. Across many disciplines, accreditation provides a mechanism for signalling quality, encouraging continuous improvement and ensuring graduates develop the skills that employers and society need. Economics remains something of an outlier in not having an equivalent accreditation system, linked to its principal professional body.

One of the findings highlighted by AQE is that many economics students choose the subject because they want to make a positive difference in society, yet fewer than half feel their education is helping them develop the knowledge and skills needed to address climate change. The environmental transition will require economists who can work comfortably across disciplines, engage with uncertainty, understand ecological limits and collaborate with scientists, policymakers and communities. The future economy will need economists who can help society navigate complex environmental challenges.

Interdisciplinary approaches

A key tenet of the current IES strategy is helping environmental scientists work across discipline boundaries. Neither environmental science nor economics can solve today's challenges alone. Environmental scientists can help ensure that economic thinking remains grounded in ecological realities and planetary boundaries. Economists can help ensure that environmental ambitions are translated into workable policies, investments and institutions. Both perspectives are needed if we are to move from identifying problems to delivering solutions.

I therefore believe that there is, and will be in the future, significant opportunity for dialogue between environmental professionals and the emerging AQE community.

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^{Header image: © Iakov Kalinin}