The Environmental Economics (EE) department investigates how economic growth (including the improvement of livelihoods for the world’s poor) and environmental sustainability can be reconciled. Part of the answer lies in the use of economic principles such as the 'polluter pays principle', market mechanisms for ecosystem services, resource use and natural disaster protection, and other economic instruments such as environmental taxation. Our research tools include economic models, statistical analysis, empirical data collection (e.g. surveys, choice experiments) and methods such as cost-benefit analysis.
IVM’s four main topic areas (water, climate, energy, and ecosystems) are part of the three main research lines of the EE department: economics of climate change, economics of renewable energy, and economics of ecosystems. Other areas of application include for instance water and air pollution and waste. A list of current key projects is found here.
The department is organized around three research themes: Economic Valuation; Economic Modelling; and Economic Instruments.