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. In partnership with  the Institute for New Economic Thinking (INET) at the Oxford Martin School, the Oxford Energy Network and Climate Econometrics, we explore 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.


New report

Net zero portfolio targets for development finance institutions (DFIs): challenges and solutions

New report focusing on how DFIs could to align their activities with the objectives of the 2015 Paris Agreement.

Developed in partnership with Climate Compatible Growth (CCG)


We are interested in the transition to net zero emissions and sustainable development. Progress towards sustainability will require not just thoughtful government intervention but also major shifts in the behaviour of households, workers and firms.  Our research extends across the economic system to identify the crucial points where small actions can generate large-scale positive change. Our goal is to help policy makers implement the fast and comprehensive shifts necessary for establishing environmentally sustainable development pathways.


What can universities do about climate change?

Professor Fankhauser writes on how universities can help tackle climate change through teaching, research, community engagement, campus emissions and divestment. "Few sectors have a more wide-ranging role than higher education in delivering our climate goals. Pretty much everything universities do has a direct bearing on climate outcomes."