Regulation and Markets

As governments seek to meet climate and environmental goals while managing pressures on growth, trade, energy security, and household welfare, the design of regulation and markets has become increasingly consequential.

Policies must not only reduce environmental harm, but also create credible incentives for firms and households, mobilise investment, and distribute costs and benefits fairly.

Environmental economics research is essential to understanding these trade-offs: it provides the evidence and analytical tools needed to compare policy instruments, anticipate behavioural responses and identify which approaches work, for whom and under what institutional conditions.

Research under this theme therefore includes carbon markets and pricing, fossil fuel transitions, environmental regulation, climate finance, international climate policy, and trade policy.