Understanding the interaction between the economy and the environment

The complex relationship between the economic system and our environment is the focus of our research. We investigate the use of economic instruments to promote environmental quality; the role of markets in pricing externalities; and the cost effectiveness and impact of regulation designed to facilitate environmental performance.

Our research encompasses a broad range of approaches. Our work on sensitive intervention points – where a modest action triggers an outsized response – could help to accelerate the transition to net-zero, while we also lead solutions-led research into economically, socially and environmentally scalable greenhouse gas removal options.


From research on greenhouse gas removal solutions to reducing carbon emissions in difficult to decarbonise sectors, our work extends across the economic system. We’re working to identify the crucial points where small actions can generate large-scale positive change in moving to net-zero. In addition, we developed guidance on delivering successful carbon offsetting schemes.

Our work

We work in partnership with the Institute for New Economic Thinking (INET) at the Oxford Martin School, and in collaboration with the Oxford Energy Network. We're developing new methods of modelling economy-ecosystem interactions to enhance our understanding of the impact of climate policies on economic growth, employment, and the political economy.

  • Explores natural capital
  • Measures wealth creation
  • Stimulates green technology innovation
  • Assesses climate and economic risk
  • Models the post-carbon transition
  • Supports reforms to electricity and energy markets for the post-carbon transition.



As the world heats up, could 'carbon clubs' supercharge climate action?

Forbes' David Vetter explores a new working paper by Bethan Adams, Kaya Axelsson and Adam Parr on the concept of an international "Carbon Club." A Carbon Club is a group of countries who individually introduce a Border Carbon Adjustment (BCA) on carbon-intensive imported goods, working independently but in parallel. Adam Parr told Vetter that "Pricing signals are a fundamental principle of how markets operate, and taxing bad stuff is a fundamental tax principle of how governments operate."


  • Professor Cameron Hepburn | Professor of Environmental Economics
  • Professor Robert Hahn | Visiting Professor

Deputy Director


  • Dr Géraldine Bouveret | Honorary Research Associate
  • Dr Kim Schumacher | Honorary Research Associate
  • Alexander Pfeiffer | Research Assistant

Research Assistants

  • Sugandha Srivastav
  • Nicolas Cerkez
  • Penny Mealy
  • Simone Sulikova
  • Matthias Roesti

Faculty Associates


  • Dr Kirk Hamilton | The World Bank