Environmental Economist

What is an environmental economist? Environmental economists specialize in a branch of economics that incorporates environmental implications into economic analysis.

They study the environmental impacts, both positive and negative, of projects and policies from an economic perspective and use this to advise industry and government on the environmental impacts of decisions.

At a Glance

Imagine it is a warm fall day, the sun gleaming off the yellow and gold poplar leaves and the deep green of the neighbouring pines. You are perched on the edge of a slope looking 10 metres down into a beautiful river valley. You are an environmental economist and are tasked with assigning a monetary value to this area.

Last month, a developer approached the municipality for permission to subdivide the land around the river valley and build expensive retirement estates. But, before the municipality decides, it has asked you to evaluate the economic consequences.

This is a complex job, but it is what you are trained to do.

As an environmental economist, you will approach this problem using a variation of the traditional cost-benefit analysis, whereby you outline all the potential benefits to the municipality if it agrees to allow this development, as well as the possible costs.

On one hand, you outline the potential revenue gain for the municipality as a result of increased property taxes. You also calculate the benefits of increased economic growth in nearby communities that would result from a large construction project like this one.

On the other hand, you need to evaluate the project’s cost in terms of environmental impact. This is the tricky part: the environment does not have an easily defined dollar value.

As part of your comparative analysis, you will use valuation tools and methodologies to assign a monetary value to the river valley’s environmental assets.

You will determine the cost of removing half the area’s trees, destroying wildlife habitat, and increasing soil erosion, as well as the cost of the air and water pollution that would result from the construction project.

In addition, the new development would restrict access to the river; you must calculate the potential cost to tourism, outdoor recreation, and the quality of life of nearby residents.

As an environmental economist, you are responsible for quantifying the environmental impact of the new development so it can be compared to the monetary gain.

Job Duties

Job duties vary significantly from one position to the next, but in general environmental economists are involved in the following activities:

Advise on the analysis and development of economic policy instruments such as trading systems, green taxes, and financial incentives
Contribute to the formulation of government economic policies relating to environmental issues
Study the effects of government economic and monetary policies, taxation, and expenditures on the environment and the economy
Analyze how environmental policy and regulations interact with growth, trade, productivity, and competitiveness
Conduct research on local, regional, national, multilateral, and global markets
Present economic and statistical concepts and results in effective ways
Estimate the economic and environmental effects of changes in legislation or policy on government, industry, and society at large
Estimate the effects of environmental legislation on the economy using economic instruments
Conduct research to develop forecasts for economic trends
Develop and apply economic models to analyze environmental issues
Address concerns and questions from the public and attend public meetings
Calculate the value of environmental goods and capital

Work Environment

Environmental economists work in a variety of locations, including:

The office:

Creating economic models
Researching and analyzing data and preparing reports
Providing advice to decision and policymakers
Participating on committees for land and resource development
Communicating on the phone and in meetings with clients, stakeholders, government departments, colleagues, and experts in the field

The field:

Travelling and presenting economic information to stakeholders, clients, contractors, and the public
Carrying out research and visiting sites
Attending conferences and meetings

Where to Work

There are a number of places environmental economists can find jobs. They include:

Federal, provincial/territorial, and municipal governments
Economic and management consulting firms
Environmental consulting firms
Colleges, universities, and research institutes
Not-for-profit, non-governmental, and international organizations

Search for jobs on the ECO Canada Job Boad

Education and Skills

If you are considering a career as an environmental economist, you should have a strong interest in:

Mathematics
Economics
Social studies
Biology
Information processing

If you are a post-secondary student considering a career as an environmental economist, the following programs are most applicable:

Mathematics
Environmental Management
Natural Resource Management
Social Sciences (Law and Religious studies)
Business Administration

In most cases, the minimum education requirement is a university undergraduate degree.

Although it is not necessary to become certified to work as an environmental economist, some environmental economists decide to belong to professional organizations depending on their sector of employment.

Our Certified Environmental Professional (EP) designation can also be useful for succeeding in your career.

Skills

Hard/Technical Skills (skills obtained through formal education and training programs)

Economic forecasting and modelling
Microsoft Office
Risk assessment
Quantitative data software and analysis (e.g. EViews, Tableau)
Data analysis
Research

Soft Skills (personal attributes and characteristics)

Team oriented
Verbal and written communication
Knowledge of environmental governance and compliance
Monitoring and coordination
Leadership
Collaboration skills

Environmental employers look for professionals who can combine technical knowledge with soft skills. Watch our free webinar “Essential Not Optional: Skills Needed to Succeed in Canada’s Environmental Industry” or take our Essential Skills courses.

Role Models

Erik Haites

Erik Haites has spent his thirty-year career as a consultant, specializing in environmental economics during the past decade. Today federal and provincial governments, the United Nations Climate Change Secretariat, research institutions and corporations come to him for his expertise in research, analysis, and report writing. The work is challenging, he says, "The cost of hiring a consultant can be high, so people typically hire them when there are tougher issues to analyze. I get challenging things to work on and it's always changing."

Even though Erik Haites doesn't say so, it must have taken a lot of effort to get a bachelor¹s degree in math, a master¹s of business administration, a master's of science degree and a Ph.D. Even if his education took many years of hard work, Erik makes the path to his current position sound simple; "I got a summer job with a consulting firm after my first year of graduate school. I liked the work and they hired me back after I finished. There was no particular interest in high school or later that led me to it.

I happened to get a job, I liked it and stayed with it." He has made his career in the field of environmental economics. "In the last few years that has been mostly issues related to the economics of climate change and how to limit greenhouse gas emissions, and in particular emissions trading programs as policies to limit gas emissions." Emissions trading allows a source (e.g., a factory or smelter) that reduces its gas emissions to gain credits, which encourages everyone to reduce greenhouse gases.

Your Impact

As an environmental economist, you help organizations understand the trade-off with some controversial issues like climate change policy and recycling policy.

You are concerned with questions such as, the amount to spend on pollution control, and if it is better to have some level of pollution because of the benefits that may come with it.

By asking the tough questions surrounding the benefits and costs of maintaining a cleaner environment, you can come up with viable solutions based on research, data modelling and analysis, to report the best course of action.

You help design policies that enhance environmental quality at the lowest possible cost to both organizations, government, and society.

You have a strong interest in the environment and your skills and expertise guide clients towards better decision making and problem-solving around environmental issues.

Occupational Classification

Individuals employed as environmental economists may be classified in one or more of the following occupational groupings:

NOC Code: 4162- Economists and Economic Policy Researchers and Analyst

What is a NOC Code?

The National Occupation Classification (NOC) provides a standardized language for describing the work performed by Canadians in the labour market. It gives statisticians, labour market analysts, career counsellors, employers and individual job seekers a consistent way to collect data, describe and understand the nature of work within different occupations.

The NOC is developed and updated in partnership with Statistics Canada to coincide with the 5- year census cycles. It is based on in-depth occupational research and consultations conducted across Canada, to reflect changes in the Canadian labour market.