• Environmental Economics and Policy

It is now almost universally accepted that the environment is not a separate entity from the economy. Changes in one affect the other. Thus, economy and the environment must be fully integrated in decision-making. In this context, environmental economics has become an indispensable toolkit of decision making: no sensible environmental policy can be made without undertaking sound economic analysis. Research in this area focuses on design and analysis of market-based environmental policy instruments, in particular environmental taxation, emissions trading, and clean development mechanisms; examining environmental implications of international trade and investment policies; undertaking vigorous economic model-based analysis of energy, climate and environmental policies; investigating the roles of the development, deployment and transfer of environmentally friendly energy technologies and the efficient use of energy and resources in promoting sustainable development; and studying appropriate governance and institutional frameworks for engaging all major economies of the world in mitigating climate risks.