research topics on economic systems

Twenty Key Challenges in Environmental and Resource Economics

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• Published: 16 October 2020
• Volume 77 , pages 725–750, ( 2020 )

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• Lucas Bretschger 1 &
• Karen Pittel 2  

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Economic and ecological systems are closely interlinked at a global and a regional level, offering a broad variety of important research topics in environmental and resource economics. The successful identification of key challenges for current and future research supports development of novel theories, empirical applications, and appropriate policy designs. It allows establishing a future-oriented research agenda whose ultimate goal is an efficient, equitable, and sustainable use of natural resources. Based on a normative foundation, the paper aims to identify fundamental topics, current trends, and major research gaps to motivate further development of academic work in the field.

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1 Introduction

1.1 research frontier.

The research agenda in environmental and resource economics has always been very broad and dynamic, reflecting the ways our economies interact with the natural environment. While in classical economics of the eighteenth century the factor land played a dominant role, the effects of pollution externalities, resource scarcities, ecosystem services, and sustainability became important in subsequent time periods. These issues have triggered different waves of research with very prominent results, specifically on optimal policies in the presence of externalities (Pigou 1920 ), optimal extraction of non-renewable resources (Hotelling 1931 ), optimal capital accumulation in the presence of resource scarcities (Dasgupta and Heal 1974 ), and sustainable development (Hartwick 1977 ; Pearce et al. 1994 ). Of course, the list of topics has already been very diverse in the past but has increasingly become so with recent global environmental problems challenging the functioning of a world economy which is growing at a high rate and heavily relies on an international division of labour and trade.

In the past, new research challenges emerged and manifested in different ways: Some topical fields became increasingly relevant due to new technological developments, new ecological or societal challenges or new political agendas. Others arose in fields that were already well researched but rose in importance. Not all challenges were of a topical nature. In some fields, we found our methodological tool-kit not equipped to deal with new problems or in need of extension to find new (and better) answers to old questions. At the same time, it has become increasingly clear that we have to reach out to other disciplines to meet new and often immense challenges. In environmental economics it is key to seek a good balance between disciplinary excellence, interdisciplinary collaboration, and political impact.

Environmental and resource economics is a dynamic field, in which new key topics emerge frequently. So, while the topical and methodological challenges that the paper identifies will be important for some time to come, they will and should also be subject to further development over the next years and decades. The paper aims to identify and address the variety of new complex problems generated by humans when they exploit natural resources and the environment. We specifically identify Twenty Challenges that we feel will be important for environmental and resource economists to address. We are aware that such a list will never be unanimously agreed upon and we do not even lay claim on the list being complete; the next section provides a background to the compilation of the list. Nevertheless, we feel it to be important to (at best) point researchers in directions important to work in in the future or (at least) to launch a new—controversial but productive—discussion on the development of our field. In any case, the paper should support the profession to operate at the research frontier generating novel theories, empirical designs, and workable policies. But, before we turn to the Twenty Challenges , we aim to motivate the framing of research in our field—past, present and future.

1.2 Identification of Research Challenges

To provide a normative foundation for our research agenda we characterize our underlying assumptions and generalized views on the nature of research in the field. This set of basic assumptions motivates the criteria of importance, activeness, and distinction of the selected topics as well as our choices with respect to design, methodology and research methods. Identifying the relevant issues, i.e. the mere choice of what to study in environmental economics imposes specific values on the subjects. In our view, the guiding principle in the normative framework is that environmental economics differs from general economics by its ontology, i.e. the system of belief that reflects the interpretation of what constitutes an important fact. It is a deep and serious concern about the state of the natural environment that drives the economic analysis of ecological processes. Nature is not simply part of the economic system but a different system with its own very complex regularities and dynamics; ecosystem values are not reducible to market exchange values. The task to integrate the ecological and economic systems to a holistic framework in an appropriate manner and to derive valid guidelines for the economy under the restrictions imposed by the environment lies at the heart of our research. Central parts of the ontology are the valuation of ecosystems, the increasing scarcities in natural resources and sinks, the effects of environmental externalities, the long-term orientation of planning, an important role of uncertainty, and the existence of irreversible processes. The anthropocentric view and the use of utilitarianism do not imply that individuals are purely self-centered and narrowly selfish. It highlights the indistinguishable role of human decision making for the future of the planet and aims at decision making that cares for efficiency, equity, and posterity. Based on a broad utilitarian setup, growth is not valued in terms of material consumption but in terms of wellbeing, which includes elements like social preferences, work-life balance, appreciation of nature etc. Posterity reflects our care for future generations, whose welfare should not be harmed by the activities of current generations. Fundamental changes of the economy e.g. the phase-out of fossil fuels, includes policy-induced decrease of activities, a role for technology, substitutability in production and consumption, a decoupling from natural resource use, and internalizing cost to correct market failures. Substantive transitions are very difficult to implement, as important lock-in mechanisms such as habit persistence, built infrastructure, and supporting policies such as subsidies stabilize current practices. To achieve a change of mindset in politics to achieve a transition to a green economy is a difficult task. A fundamental systems change, as discussed by many these days, is undoubtedly much more complex to accomplish; its impacts are uncertain and may delay the necessary steps which are important to rapidly improve the state of our ecosystems.

We acknowledge that one can always challenge an ontological position because it reflects ethical principles. In our research agenda there is no external reality, independent of what we may think or understand it to be. We reduce economic and ecological complexity through our personal system of belief to design our preferred map, which by definition is not the territory. In his survey of ecological research issues for the economists, Ehrlich ( 2008 ) refers to his ”own mental meta-analysis” to motivate his choices and to alert us to the importance of research on big issues like the meaning of life, mortality, and death. At the same time, he acknowledges that the emergence of pervasive new environmental problems, such as climate change and biodiversity loss, requires to flexibly adjust research programs to societal demand. Adjustments of the agenda may also be supply driven, when new methods allow for more effective engagement with important issues like risk and uncertainty or assessment of empirical regularities with superior estimation methods.

1.3 Forming a Research Agenda

Environmental economics is closely linked to general economics in its epistemology, i.e. the validity, scope and methods of acquiring knowledge by using models, distinguishing between positive and normative models, and testing hypotheses with empirical methods and experiments. An important cornerstone for economic research has always been the analysis of economic efficiency. Since the early days of environmental economics research, this has also held for our field whether it concerned the efficiency in the use of natural resources or the design of policies. Although research in our field has become much more interdisciplinary and policy-oriented, this still constitutes common ground. It is still a prime duty of the economist to point at the potentially vast allocative inefficiencies of the use of natural resources in pure market economies. Efficiency is a necessary condition for optimal states of the economic-ecological system and the foundation for policies maximizing social welfare.

The pursuit of optimality has to be complemented by a requirement to take care of equity and posterity enabling sustainability of development. In this long-run perspective, economics has to highlight the substitution effect as a powerful mechanism establishing consistency between humanity and its natural environment. Substitution comes in many guises, e.g. as substitution between clean and dirty production, renewable and exhaustible resources, extractive and conservationist attitude, pollution intensive and extensive consumption, etc. This dynamic analysis is crucial in many respects. It has recently been included at all levels of research in the fields. The same holds for the issue of risk and uncertainty, a pervasive topic when dealing with the environment.

In many cases, there has been a significant discrepancy between the theoretical derivation of social optima in academia and the attempts to foster their implementation under realistic policy conditions. As a consequence, policies dealing with environmental issues have been of very different quality and effectiveness. The reduction of acid rains, the protection of the ozone layer, and cutbacks of particulate matter emissions in many world regions were among the prominent successes. Global warming, extraction of rare earth elements, and loss of biodiversity are not yet addressed in a comprehensive manner. Political resistance against the protection of nature often refers to the economic costs of policies, including the concerns of growth reduction, employment loss, and adverse effect on income distribution. The lack of success in many policy areas has led to reformulation and extension of the research agenda. In the future, research should focus more on strengthening the links between theory and policy.

Our selection of the Twenty Challenges is also based on the potential of research in these areas to contribute and leverage social welfare and sustainable development. We specifically look for areas that are either inherently new to the research agenda in environmental and resource economics or in which research stagnates. We present the challenges in a specific order and like to highlight the links between them before we enter into the details. The aim of net zero carbon emission by the mid of the century dominates current policy debates and unites basically all important elements of our discipline; it thus constitutes a good starting point. Decarbonization necessarily involves a deep understanding of systems dynamics and of risk and resilience, which are presented next. An important and not sufficiently addressed research issue is the emergence of disruptive development during a substantive transition, the next challenge for our research. Extending the scope, we then address human and government behaviour. In the context of environmental policy, the popular and sometimes underrated request of an equitable use of the environment has emerged as a dominant topic, a next issue for further research. As natural capital involves many more elements than the climate, biodiversity and general ecosystem services are included in the sequence. Broadening the scope to the big problems of human behaviour with natural resources we then turn to political conflicts, population development and conflicting land use. Shifting the focus on induced movements of the labour force we go on by dealing with environmental migration and urbanization. These affect welfare of the individuals in a major way, like health and the epidemiological environment as a next research challenge. In terms of the reorganization of the transition to a green economy we highlight the central role of finance and the implementation of new measures in the dominant energy sector. The final three research challenges are motivated by advances in the methodology. Big data and machine learning offer new perspectives in sustainability research, refined methods and increasing experience improve our simulation models and structural assessment modelling, which forms the last three challenges of our list.

1.4 Links to Current Research

In order to put our agenda into a broader perspective and to concretize the selected challenges, we believe it is important to show the relationship between our research agenda and the priorities in current literature and policy debates. We have considered three main links. First, we conducted a quantitative and qualitative literature review and analyzed current research as presented at international conferences (World Conference of Environmental and Resource Economics in 2018, the SURED conference in 2018, Meetings of the American, European, and Asian Associations of Environmental and Resource Economics in 2019). The aim of this analysis was to see where our profession moves and which of the currently hotly debated topics offers a high potential for future research. Second, we took the discussions in interdisciplinary research fora into consideration to identify further fields that are of high importance for future resource use, sustainable development and environmental outcomes but have so far not been adequately addressed from an economics perspective. Information on this research was gained through interdisciplinary research initiatives (for example The Belmont Forum, Future Earth and National Research Funding Activities). Involvement in interdisciplinary and globally oriented research councils provided further access to the discussions in other disciplines. Third, we draw conclusions from current policies and news as well as our involvement in the policy arena. The authors are involved in a number of institutionalized policy-oriented activities on the regional, national and international level (Regional Climate Councils, National Climate Policy Platforms as well as the UN climate negotiations).

The paper relates to similar contributions in recent literature. Based on citation data Auffhammer ( 2009 ) identifies important topics and scholars and provides a brief historical overview of the discipline from exhaustible and renewable resources to sustainability, pollution control, development, international trade, climate change, international agreements, and non-market valuation. Polyakov et al. ( 2018 ) analyze authorship patterns using text analysis for classification of articles in Environmental and Resource Economics. Based on 1630 articles published in the Journal from 1991 to 2015 they document the importance of applied and policy-oriented content in the field. They identify non-market valuation, recreation and amenity, and conservation, as popular topics and growing when measured by both number of articles and citations. Costanza et al. ( 2016 ) investigate the most influential publications of Ecological Economics in terms of citation counts both within the journal itself and elsewhere. Important topics turn out to be social aspects of environmental economics and policy, valuation of environmental policy, governance, technical change, happiness and poverty, and ecosystem services. A contemporary analysis of how research issues have developed in the Journal of Environmental Economics and Management in the time of its existence is provided by Kubea et al. ( 2018 ). These authors show that the sample of topics has broadened from the core issues of non-market valuation, cost-benefit analysis, natural resource economics, and environmental policy instruments to a more diversified array of research areas, with climate change and energy issues finding their way into the journal. In addition, increasing methodological plurality becomes apparent. They conclude that energy, development, and health are on the rise and that natural resources, instrument choice, and non-market valuation will endure; multidisciplinary work will be increasingly important. An excellent survey on research in the central field of sustainable development is provided in Polasky et al. ( 2019 ), which explicitly shows where the collaboration between economists and the other disciplines is currently insufficient and how it should be intensified in the future.

Regarding the literature that we connect our Twenty Challenges to, we naturally face the problem that some challenges have so far not been addressed adequately in the (economics) literature. In these cases we also reference papers from other disciplines. We, however, also take basic literature and recent research in environmental and resource economics into account. As we often deal with emerging topics, we cite some of this work even when not yet published. In other cases, where future research can build on or learn from past research, we also go back in time and reference older papers. Ultimately, neither our list of challenges nor the literature we base our analysis on will be satisfying to everybody. Our selection cannot be comprehensive and does not claim to be. But the specific task to identify future-oriented topics ultimately lasts on a subjective individual assessment of the authors. Nevertheless, hopefully it imparts impulses for future research in the different subfields of environmental and resource economics.

2 Twenty Challenges

The ordering of the following challenges should not be understood to perfectly reflect their individual importance (beyond what we explained in the previous sections). Also, many of the fields discussed are inherently related, creating some unavoidable overlap. We feel that efforts to bring the challenges into some complete ’natural order’ are not only doomed to fail but also would not do them justice as they relate to very different areas and can/should not be weighed against each other. Also, attempting to show their interrelations would result in a 20-by-20 matrix that would not provide more clarity.

Deep decarbonization and climate neutrality To limit global warming to a maximum of 1.5 degrees Celsius, a state of net zero greenhouse gas emissions—i.e. climate neutrality—should be reached by the mid of the century (IPCC 2018 ). The directly following and unprecedented challenge is to decarbonize the global economy in very a narrow time window (Hainsch et al. 2018 ). This holds especially as the threshold for 1.5 degrees is expected to be passed around 2040 (IPCC 2018 ). Countries must increase their NDC ambitions of the Paris Agreement more than fivefold to achieve the 1.5 degree goal (UN - United Nations 2019 ). The time window for necessary decisions is closing fast. Infrastructure that is installed today often has a life span that reaches until and beyond 2050. Decisions on investments today therefore affect the ability to reach climate targets not only in 2030 but also 2050 and beyond. And while the necessity of reaching net zero emissions by mid century is reflected by, e.g., the European Commission’ Green Deal, much uncertainty remains regarding its implementation. This holds to an even larger extent with respect to other countries and regions. The fundamental challenge is to better understand economically viable deep decarbonization paths and then to implement incentives for input substitution, technology development, and structural change. More specifically, the vision of these policies has to be long-term and reach beyond phasing out coal and increasing energy efficiency. However, despite recent research efforts in climate economics, many issues around decarbonization, negative emissions and economic development are still controversial or insufficiently understood by economists. Specifically, industry applications for which alternative technologies are not available yet as well as agricultural emissions will have to be addressed. Also, the later greenhouse gas emissions start to fall, the faster their decline will have to ultimately be in order not to overshoot temperature targets (Agliardi and Xepapadeas 2018 ), leading to an increased need for negative emissions. However, potential trade-offs and synergies in the use of land for negative emission technologies, food production and biodiversity are still underresearched. Identifying technologies today that are the most promising in the very long run is subject to high uncertainty. Yet, while investing too early might be costly, delaying investment might cost even more or might lead to a weakening of future climate targets (Gerlagh and Michielsen 2015 ). Also, transition processes may involve strong scale effects implying nonlinear development of abatement cost. Once certain thresholds are reached, lower abatement cost or even disruptive development completely altering the production process could emerge in a later phase of decarbonization. Given the dramatic increase needed in mitigation efforts to reach the 1.5 or even 2 degree target, more attention also has to be devoted to the question of adaptation. Until today, the focus of research as well as policy has been primarily on mitigation rather than adaptation, partially because of expected substitution effects between mitigation and adaptation and partially because adaptation was taken to be automatic (Fankhauser 2017 ). However, as Fankhauser lays out “knowledge gaps, behavioral barriers, and market failures that hold back effective adaptation and require policy intervention”. All of these topics present a wide scope for substantial further research.

Dynamics of the economic-ecological system Depletion of exhaustible resources, harvesting of renewable resources, recycling of raw materials, and accumulation of pollution stocks require basic societal decisions which are of an inherently dynamic nature. Whether the world society will be able to enjoy constant or increasing living standards under such dynamic natural constraints depends on another dynamic process, which is the accumulation of man-made capital. To derive the precise laws of motion in all the stock variables is challenging because general solutions of dynamic systems with several states are usually hard to obtain. An adequate procedure to obtain closed-form solutions may be to link several stocks in a reasonable way, e.g. when simultaneously dealing with resource, pollution, and capital stocks (Peretto 2017 ; Bretschger 2017b ). The specific challenge is then to find the best possible economic justification to motivate the links. One may also focus on a few stocks which are considered the main drivers of economic development and sustainable growth on a global scale (Marin and Vona 2019 ; Borissov et al. 2019 ). When resorting to numerical simulation methods it is a main challenge to provide basic economic results which are sufficiently robust and supported by ample economic intuition. Social-ecological systems are increasingly understood as complex adaptive systems. Essential features of these systems - such as nonlinear feedbacks, strategic interactions, individual and spatial heterogeneity, and varying time scales—pose another set of substantial challenges for modeling in a dynamic framework. A main challenge is the characterization and selection of dynamic paths with multiple equilibria and the overall tractablility of the models, given the diversity of interlinkages and nonlinear relationships. The complexity of economic-ecological systems lead to a main challenge for designing effective policies is taking account of network effects, strategic interaction, sectoral change, path dependencies, varying time lags, and nonlinear feedbacks have to be considered as well as different regional and temporal scales, interdependencies between ecosystems, institutional restrictions and distributional implications (see, e.g., Engel et al. 2008 ; Levin et al. 2013 ; Vatn 2010 ). Optimal policies should also acknowledge the balance between the preservation of the ecology and the development of the economy especially for countries growing out of poverty. Setting a price for ecosystem services and natural capital via policy is important for preventing innovation incentives from being skewed against maintaining natural capital and ecosystem services.

Risk, uncertainty, and resilience The vast majority of contributions in environmental economics use models with a purely deterministic structure. However, large negative environmental events require a completely different framework, which poses specific challenges for modelling. Heatwaves, floods, droughts, and hurricanes are shocks that are very uncertain, arriving at irregular times and with varying intensity. Also, risk and uncertainty about socio-economic impacts and technological development affect the optimal design of policies (see, e.g., Jensen and Traeger 2014 ). Moreover, uncertainty changes the political economy of climate policy and, finally, regulatory and policy uncertainty might create obstacles to reach climate targets through, for example, distortions of investment decisions (Pommeret and Schubert 2018 ; Bretschger and Soretz 2018 ). Stern ( 2016 ) argued forcefully that climate economics research needs to better integrate risk and uncertainty. Bigger disasters or so-called ”tipping points” such as the melting of the Greenland ice sheet, the collapse of Atlantic thermohaline circulation, and the dieback of Amazon rainforest involve an even higher level of uncertainty (Lenton and Ciscar 2013 ) with implications for optimal policy design and capital accumulation (Van der Ploeg and de Zeeuw 2018 ). Understanding the implications of tipping points is further complicated as the different tipping points are not independent of each other (Cai et al. 2016 ). The Economy and the Earth system both form non-deterministic systems; combining the two in an overarching framework and adding institutions for decision making multiplies the degree of complexity for adequate modelling and methods (Athanassoglou and Xepapadeas 2012 ). It is thus a main challenge for further research to provide analytic foundations and policy rules for rational societal decision-making under the conditions of risk and uncertainty up to deep uncertainty (Brock and Xepapadeas 1903 ; Baumgärtner and Engler 2018 ). Future work on policy design under deep uncertainty can build on a wide range of literature ranging from the assessment of the precautionary principle in this context to the fundamental contributions by Hansen and Sargent ( 2001 ) and Klibanoff et al. ( 2005 ) as well as on more recent analyses in the context of environmental and resource economics, e.g. Manoussi et al. ( 2018 ). An important challenge of the environmental discipline is to provide a framework for the global economy providing the conditions for resilience against major shocks and negative environmental events (Bretschger and Vinogradova 2018 ). With deep uncertainty one has to generate rules for deep resilience. Including uncertainty is especially important when environmental events do not occur constantly but cause the crossing of tipping points involving large and sudden shifts. Economic modeling needs to increasingly incorporate tipping points and the value of resilience in theory and to generate and use data supporting the empirical validity. The combination of uncertainty and potential irreversible outcomes (e.g., species extinction) is another big challenge for research.

Disruptive development and path dependencies Substantial and sometimes disruptive changes in behavioral patterns, economic structure and technologies will be required if net zero GHG emissions and the UN sustainable development goals are to be reached. On the bright side, development may exhibit favorable disruptions. Consumers’ preferences and political pressure coupled with new technology achievements may alter certain sectors in a short period of time. Similar to the communication industry which has completely changed, transportation and heat generation could and mst probably will undergo fundamental changes in the near future. The research challenge here is to provide adequate models predicting and adequately analyzing such important transitions and to highlight resisting forces at the same time. In fact, the change of trajectories in development is often hampered by technological, economic and behavioral lock-ins, resulting in path dependencies and inertia. In such situations, history influences current development through, for example, past investment in R&D, the size of established markets, increasing returns or habits acquired (Aghion et al. 2016 ; Barnes et al. 2004 ; Arthur 1989 ). Behavioral path dependencies affect acceptance and adoption of new technologies, hinder social innovation and might render policies aimed at marginal changes ineffective. They can thus postpone the transition to a low-carbon economy, harm efforts in biodiversity conservation and prolong unsustainable resource use patterns and lifestyles, even if they are welfare enhancing in the long-run (e.g. Acemoglu et al. 2012 ; Kalkuhl et al. 2012 ). Inertia and lock-ins may also be policy driven with, for example, political or economics elites trying to block change (Acemoglu and Robinson 2006 ) or clean energy support schemes fostering new technology lock-ins. Whether disruption or a lock-in emerges depends, for example, on expectations determining the steady state of an economy (Bretschger and Schaefer 2017 ). This requires nonlinearities e.g. in capital return, generating overlap regions in which the growth path is indeterminate and could be either driven by history or by expectations. The challenge is to add more substantial research into system dynamics and the political economy of change, to gain a better understanding of the different mechanisms responsible for inertia and disruptive change. So far, the role of path dependencies has often been neglected in empirical as well as theoretical analyses (Calel and Dechezlepretre 2016 ). Also, understanding the triggers or tipping points for disruptive change can help to identify policies that have a big environmental impact with moderate costs in terms of environmental policy.

Behavioral environmental economics Traditionally, economics focuses predominantly on the supply side when analyzing potentials and challenges for environmental policies. Preferences of individuals are mostly assumed to be given with economic analysis confining itself to studying the effects of changing incentives and altering constraints. The change and development of preferences over time plays only a comparative minor role for economic research. Also, the follow-up question whether policies should be allowed to tamper with preferences is rarely discussed with nudging being one big exception to this rule (e.g. Strassheim and Beck 2019 ). While the traditional, supply-side oriented analysis has provided powerful results in positive analysis, it proves to be limited in a field which inherently includes normative conclusions like environmental economics. The path toward sustainable development requires behavioral changes and political actions changing our relationship to the environment. Ultimately, environmental policies have to be decided by the same people overusing the environment in the absence of a policy. In situations where outcomes are inefficient because individuals and political actors follow their own self-interest and ignore external costs and benefits of their actions, it is clearly not sufficient for economists to advocate the implementation of environmental policies. It is crucial to understand under what conditions preferences change and agents support green policies (Casari and Luini 2009 ). So, the challenge to economic research is to better understand the evolution of green attitudes, the emergence of preferences for a clean environment, and expectations in the case of multiple equilibria (Cerda Planas 2018 ). The formation and development of preferences is also not independent from cultural, regional and community aspects. Research that ignores heterogeneity among actors or the role of social and group dynamics and only relies on the traditional, isolated analysis of individual preferences is likely to lead to an incomplete understanding of preference dynamics. As the example of discounting shows, the social context has an impact on myopic attitudes and the motivation to undertake sacrifices for a cleaner future (Galor and Özak 2016 ). Also, attention to behavioral details, that economists might find rather uninteresting from a research perspective, might influence effectiveness of policies tremendously (Duflo 2017 ). Especially with the natural environment, the choice and guise of policy instruments should take these mechanisms into account.

Institutional analysis of environmental policy Virtually every contribution to the environmental and resource economics literature culminates in one or several policy conclusions. However, these results are often received with skepticism from industry and public. Therefore, a continuing key challenge for our profession is a thorough understanding of environmental policy institutions, processes and decision-making; this task has become even more important given the enormous scale and global nature of future policies. Research in this area has, however, the advantage of already looking back on a long tradition (see e.g. the body of work by Daniel Bromley, e.g. Bromley 1989 ). Well-designed institutions support and create incentives to drive development toward a welfare-improving state. Absent, weak, inefficient, or even corrupt governments and institutions are detrimental to successful environmental policy (Pellegrini and Gerlagh 2008 ; Dasgupta and De Cian 2016 ) or might lead to detrimental effects of resource wealth (see Badeeb et al. 2017 for an overview of the related literature). To effectively increase social welfare by, for example, conservation of ecological services, one has to design policies in a way that allow implementation under realistic policy conditions (Rodrik 2008 ). Pure reference to the construct of a social planner is not sufficient. For increasing efficiency in problem solving, the ex-post evaluation of policies has to be expanded and improved. Policy evaluation should not only analyze if regulatory objectives have been reached but also which side-effects arise (OECD 2017 ). Moreover, the comparison with alternative measures and a continuous international exchange of best practices have to be supported by science. A proactive environmental policy analysis should furthermore include studying vested interests, lobbying, political power, policy communication, and voting behavior. Especially insights from behavioral economics may add to our understanding of a proper design of environmental institutions. On the international level, the adequate institutional design for global environmental policy still poses great challenges. Beyond traditional research fields like international environmental agreements in specific areas like climate change, the multi-dimensionality of the sustainable development goals (SDGs) and potential trade-offs between different goals need to be explored further. This holds especially given the vast differences in income, vulnerability, and resilience between countries, as well as the need for unanimity and voluntary contributions on the UN level. Relating national to international policies has the potential to be especially rewarding in this context given the SDGs relevance for and acceptance in national as well as international politics. Insights from the analysis of institutions in traditional economic sectors (e.g. on the efficiency of capital markets) should be transferred and applied to the global level (e.g. with respect to investment in the world’s natural capital stock).

Equitable use of the environment We place equity and fairness in dealing with the natural environment on the priority list of our challenges because first and foremost equity is a central requirement for sustainability of development. By definition, sustainable development seeks an equitable treatment across different generations as well as agents living today. We also believe that for successful environmental policies, equity and fairness are crucial complements to the dominant efficiency requirement (Sterner 2011 ). It is a specific challenge of our field to study equity in an economic context and to demonstrate its importance for sustainability to mainstream economics and the public. The first aspect of the problem is the aforementioned unequal vulnerability of countries to environmental changes such as global warming. If vulnerability is higher in less developed countries, the equity perspective is especially striking. As a matter of fact, most of the climate vulnerable countries have a low average income. Global environmental policy is then motivated not only by efficiency but also by the aim of preventing increasing inequalities (Bretschger 2017a ). Global efforts are also indicated to avoid adverse feedback effects of induced inequalities like environmental migration. The second aspect is that acceptance of public policies sharply increases with the perceived fairness of the measure (Pittel and Rübbelke 2011 ; IPCC 2018 ). In the past, economists have often underestimated political resistance against efficient environmental protection, which was mostly related to negative impacts on income distribution. Take carbon pricing and emission regulation as a current example. Although evidence from cross-country studies suggests that regressivity of carbon pricing is much less frequent than often assumed in the public (Parry 2015 ), the perceived distributional impact is often very different (Beck et al. 2016 ). Therefore the impact of environmental policies on income groups, regions, and countries should be better integrated in our analysis and policy recommendations. Where efficient policies are regressive, economists have to evaluate and propose alternative or complementary policy designs. Benefits and costs need to be disaggregated by group (country) with a special attention on the poorest members of society (countries). Internationally, equity concerns need to be addressed especially in situations where the entire world benefits from the protection of natural capital and ecosystem services in poor countries (e.g., of carbon sinks and biodiversity hubs like tropical rain forests). The experience with the REDD+ process shows the complexity of designing such international approaches to incentivize and enable developing countries to protect these global public goods. More economic analysis is needed on all of the above aspects, giving rise to a rich research agenda in theory and applied work.

Loss of biodiversity and natural capital The rate of species extinction today is estimated to be up to 1000 times higher than without human interference (Rockstrom 2009 ). Human activities impact biodiversity through land use change, pollution, habit fragmentation and the introduction of non-native species but also increasingly through climate change and its interaction with already existing drivers of biodiversity change (IPCC 2002 ). In view of this, biodiversity conservation has long been a focus of politics. In 1992, the United Nations Convention on Biological Diversity main objectives were stated as ”the conservation of biological diversity, the sustainable use of its components and the fair and equitable sharing of the benefits arising out of the utilization of genetic resources” (UN - United Nations 1992 ). Yet, although economists have developed conceptual and theoretical frameworks addressing the valuation of biodiversity (Weitzman 1998 ; Brock and Xepapadeas 2003 ) and despite data on valuation having become increasingly available (see, e.g. TEEB 2020 ), Weitzman ( 2014 ) points out, that an objective or even widely agreed measure of biodiversity and its value is still missing. The same holds for an underlying theory framework and a comprehensive measure of natural capital that not only includes biodiversity but also its links to regulating services (e.g., pollution abatement, land protection), material provisioning services (e.g., food, energy, materials), and nonmaterial services (e.g., aesthetics, experience, learning, physical and mental health, recreation). How biodiversity and natural capital should be measured, which societal, political and economic values underlie different measures and valuation and how ecological and economical trade-offs should be dealt with are big challenges left for future research. In order to address these issues, not only do we need to develop appropriate assessment methods, but we also need to disclose the theoretical basics of this assessment and which trade-offs go hand in hand with different assessments (Brei et al. 2020 ; Antoci et al. 2019 ; Drupp 2018 ). Completely new issues for the valuation of biodiversity and natural capital arise with the development of new technologies. Take DSI (digital sequence information), for example. DSI are digital images of genetic resources (DNA) that can be stored in databases. This gives rise not only to new challenges regarding their valuation but also about the fair and equitable sharing of the benefits arising out of the utilization of these resources.

Valuing and paying for ecosystem services Related to the question of biodiversity valuation is the market and non-market valuation of ecosystem services in general and the adequate design of payment for ecosystem services (PES). Overall, research on ecosystem services valuation has made significant progress in the last decades. Nevertheless, challenges remain even in traditional valuation fields (for example, valuation of non-use or interconnected ecosystems). Other, so far underresearched areas that constitute promising fields for future research are health-related valuation aspects (Bratman et al. 2019 ) and nonmaterial ecosystem services, such as amenities of landscapes or cultural ecosystem services (Small et al. 2017 ; James 2015 ). Also, data availability remains a problem in many valuation areas. Although digitized observation and information systems offer large potentials for previously unknown data access, they also raise a whole slew of new ethical, privacy as well as economic questions, especially in areas like health. While a lot of progress has been made in the valuation of ecosystem services, their impact on decision making still lags behind. One factor contributing to this disconnect are prevalent mismatches between regional and temporal scales of economic, institutional and ecological systems that make valuation and policy design complex (Schirpke et al. 2019 ). The challenge is to develop combined natural science-economic models that allow better insights into how changes in economic systems lead to changes in the flows of ecosystem services and vice versa (Verburg et al. 2016 ). This requires a deep understanding of ecological and economic systems as well as other aspects like technologies, regional heterogeneity and system boundaries, i.e. catastrophic events. It also raises classic economic problems, such as choosing an appropriate discount rate and degree of risk aversion. Regarding tools to include ecosystem services in economic decision making, PES are a, by now, well-established (Salzman et al. 2018 ) and also quite well-researched approach for promoting environmental outcomes. Still, the literature has identified a number of aspects to be addressed in the design of PES to make them more effective as well as efficient and to simultaneously improve social outcomes (Wunder et al. 2018 ; Chan et al. 2017 ). A promising area of research rarely addressed are PES to preserve transboundary or global ecosystem services through international payment schemes (for example, in tropical forest preservation). While some work has been done on the conceptual level (e.g. Harstad 2012 ), the REDD+ process (Maniatis et al. 2019 ) and the failure of the Yasuni initiative (Sovacool and Scarpaci 2016 ) show the complexity of such approaches for which a thorough economics analysis is still missing.

Conflicts over natural resources Climate change and decarbonization transform regional and global geopolitical landscapes and might give rise to future domestic as well as international conflicts (Mach et al. 2019 ; Carleton and Hsiang 2016 ). First, decarbonization changes the role of resources and of resource- and energy-related infrastructures. Climate policies affect the rent allocation between different fossil fuels like, for example, coal and natural gas, but might also change the overall rent level (Kalkuhl and Brecha 2013 ). Asset stranding can endanger stability in resource (rent) dependent countries. Conflicts may also arise over materials critical to new, low-carbon energy technologies like rare earth elements but also over access to sustainable energy (Goldthau et al. 2019 ; O’Sullivan et al. 2017 ). Further research is needed to design policies that are better equipped to reduce the vulnerability of economies to changes in resource availability and resource rents. This opens up challenges for future research, especially as restrictions from very diverse institutional capacities have to be considered to render policies efficient and effective. Second, climate change will affect the ability to meet basic human needs through food, land and water. Sulemanaa et al. ( 2019 ) find a positive effect of the occurrence of temperature extremes on conflict incidence. They stress the need for more advanced spatial econometric models to identify effects that are transmitted across space. More research is also needed on the role of institutions and interaction with other phenomena like population dynamics, migration, and environmental degradation. Currently, the role of climate for conflict is still small compared to other causes, many linkages between conflicts and climate change as well as other factors promoting conflict are still uncertain (Mach et al. 2019 ). The challenge to economic research is to get early insights into the nexus of historical and cultural factors, vested interests, population dynamics and climate change in order to help to prevent resource-related conflicts.

Population development and use of the environment Already since antiquity, demographic analysis has been a central topic of human thinking. With the Malthusian predictions of catastrophes caused by population growth, the topic is firmly related to the natural environment and the limits of planet Earth. While limited food production was the dominant topic in the 18th century, the impact of world population on global commons, availability of renewable and exhaustible resources, and ecosystem services have been dominant topics in the last decades. Still, while it is often argued in the public and in natural sciences that world population size should be a concern because of ecological constraints, economics has largely left the topic on the side; the few exceptions (Peretto and Valente 2015 ) and (Bretschger 2013 , 2020 ) point in a different direction, namely the compatibility of population growth and sustainable development under very general conditions. Current trends of demographic transition show significant signs of population degrowth for leading economies while trends for developing countries vary substantially (UN - United Nations 2019 ). Population is forecasted to expand especially in Africa, accounting for more than half of the world’s population growth over the coming decades, raising questions about the effect of this population increase on fragile ecosystems, resource use and ultimately the potential for sustainable growth (African Development Bank 2015 ). Population growth will also promote further urbanization and migration triggered by environmental and resource depletion but also giving rise to new environmental problems (Awumbila 2017 ). Challenges from population development and environment are thus closely linked to the other research topics highlighted in this article. However, population growth is not exogenously given but determined by economic, social as well as environmental factors. Education and income or economic development have long been established as crucial for fertility (see e.g. the reviews of the literature provided by Kan and Lee 2018 ; Fox et al. 2019 ). To integrate these findings into a holistic approach is a mediating challenge for future research. Climate change might affect these channels in different ways, potentially exacerbating global inequality (Casey et al. 2019 ). However, population development, fertility, and mortality are not only affected by climate change but also by other environmental stresses like air pollution (Conforti et al. 2018 ). A successful combination of endogenous fertility and mortality with natural resource scarcity, agricultural production, and pollution accumulation as well as capital and knowledge build-up in a comprehensive framework is a respectable challenge for an economic modeller; we suggest that in the future it should be considered by economists more intensively.

Land use and soil degradation The terrestrial biosphere with its products, functions and ecosystem services is the foundation of human existence, not only for food security but far beyond. Currently, about a quarter of ice-free land area is degraded by human impacts (IPCC 2019 ). The optimal use of scarce land resources becomes an even more urgent topic in the face of the biodiversity crisis and the onset of climate change. This holds especially as the physical and economic access to sufficient, safe and nutritious food is the basic precondition for human existence. Climate change challenges this access on different levels. On the one hand, climate change increases the pressure on productive land areas (due to extreme weather events such as droughts, floods, forest fires or the shifting of climatic zones). On the other hand, land plays a major role in many climate protection scenarios by reducing emissions from land use and land use change, protecting carbon stocks in soils and ecosystems, and conserving and expanding natural carbon sinks. Also, the capture and storage of CO 2 through carbon dioxide removal technologies plays an increasing role for reaching the Paris climate goals (IPCC 2018 ). The induced increase in the demand for the different services from land inevitably implies trade-offs. However, neither the trade-offs nor the potentials for synergic uses are, as of now, comprehensively understood from an economic point of view and thus pose a challenge for future research. While there is a growing literature on negative emission technologies, their costs, potentials and side effects (Fuss et al. 2019 and references within) as well as on the interaction between climate goals and other SGDs on the global level (von Stechow et al. 2016 ), many research questions still remain to be addressed (Minx et al. 2018 ). This concerns especially a better understanding of opportunity costs, governance requirements, regional and distributional effects as well as of acceptance and ethical considerations. With respect to land degradation and land use for food production, changing climate and weather conditions as well as regional population pressure may raise the rate of land degradation (Fezzi and Bateman 2015 ), hurting food security and calling for preservation policies (Brausmann and Bretschger 2018 ). The overuse of ecosystems like forests and water, which protect and complement land, can accelerate the risk of adverse shocks and thus lower soil fertility, which reveals the close link between the different research subjects. However, much of the agricultural research in this field is still quite distant from mainstream environmental economics which can harm research productivity substantially. It remains a challenge to integrate agricultural and environmental research better, for example by bringing together food production, population, and the environment into a macrodynamic framework (Lanz et al. 2017 ).

Environmental migration Migration in times of climate change is an extraordinarily complex, multicausal and controversial challenge (Adger et al. 2014 ). Heatwaves, droughts, hurricanes, and rising sea levels are likely to motivate or even force a growing number of people to leave their homes moving to presumably safer places. Climate-related migration can take a variety of different forms (Warner 2011) from voluntary to involuntary, from short- to long-distance and from temporary to permanent. Migration decisions are usually based on different motives and personal circumstances (climatically, politically, economically, socially), leading to heterogeneous reactions to climate events and making it often problematic to identify and delineate climate-induced migration. Due to these and other methodological difficulties and the small number of studies so far, no globally reliable forecasts for climate induced migration exist (WBGU - German Advisory Council on Global Change 2018a , b ). At present, the forecasted magnitude of the phenomenon ranges from 25 million up to 1 billion people by 2050 (Ionesco et al. 2017 ). Much of this migration can be expected to take place within countries, for example, from rural to urban areas or from drylands to coastal zones (Henderson et al. 2014 ) with environmental migration being one possible adaptation and survivor strategy in the face of climate change (Millock 2015 ). Given the uncertainty in future migration projections, the challenge is to improve migration models (Cattaneo et al. 2019 ) which includes a better understanding and integration of the microfoundation of agents’ migration decisions. Migration, and especially mass-migration, can have a profound impact on the environment of the new as well as the old settlement location and on their economic structure. Labor and commodities markets will be affected the most, with challenges arising also for education and health systems, government budgets and public spending. By affecting public institutions and the skill-mix of the labor force, migration alters economic development both in the sending and in the receiving countries or regions. More research is needed on these impacts. The influx of environmental migrants to new settlement locations may also trigger hostile attitudes and lead to clashes and even armed conflicts. The migrants may be perceived as rivals for scarce resources (land, clean water) or jobs. The situation may be aggravated by lack of political stability and poor-quality political institutions. Dealing with these aspects gives rise to new challenges in environment and resource economics. Traditional analysis of economic costs and benefits of migration have to be complemented by behavioral economic and political economy analyses.

Urbanization as a key for environmental development In the last 70 years, the urban population has increased fivefold with more than half of the world’s population living in cities today and forecasts projecting the share of urban population to rise to almost 70% in 2050 (UN - United Nations 2018 ). Cities are responsible for about 70% of the world energy use and global CO \(_{2}\) -emissions (Seto et al. 2014 ) and ecological footprints are positively correlated to the degree of urbanization (WBGU - German Advisory Council on Global Change 2016 ). In 2014, about 880 million people were living in slums (UN - United Nations 2016 ) elucidating the problems to make urban development environmentally as well as economically and socially sustainable. The speed of urbanization is projected to be the fastest in low and middle income countries, especially in Africa and Asia (UN - United Nations 2018 ), leading to new challenges for the provision of infrastructure, housing, energy supply, transport and even health care. Climate change can be expected to not only foster urbanization trends (Henderson et al. 2017 ) but also increase the magnitude of urbanization-related challenges. Urban areas are often located close to the coast or rivers basins, making them susceptible to rising sea levels and impacts of extreme weather events. Risks can be expected to be higher for poor households due to settlement in less safe areas and poorer housing (Barata et al. 2011 ), potentially perpetuating existing inequalities. On the other hand, cities might offer more efficient adaptation potentials. To date the consequences of climate change for cities and urbanization are still to be determined in detail but depend heavily on factors like location, size and level of development as well as governance capacities. Making cities, their population and their infrastructure resilient to climate change will be decisive for future development. The main challenge here is to better connect the research fields of environmental and urban economics to understand the drivers and dynamic effects of climate change on urbanization and resulting economic development, on adaptation costs and benefits and on the role of institutions. Insights from regional, political and behavioral economics can help shape effective governance to enhance resilience of cities to climate change.

Health and epidemiological environment Environmental degradation can have profound implications for human health. These implications lead to direct as well as indirect challenges for economic decision making, economic development and thus economic research. While many of these challenges might not be new per se, they can be severely exacerbated by, for example, climate change. Economic implications of long-term increases in vector-borne diseases and heat stress as well as pandemics like the COVID-19 and ozone formation still remain to be analyzed in depth, as do the costs and benefits of adaptation measures dedicated to mitigating these effects (Mendelsohn 2012 ). Climate change also affects human health indirectly through impacts on economic development, land use, and biodiversity - and vice versa. Failed emission reductions and bad environmental management especially impact developing countries negatively through direct effects on health but also through health effects of delayed poverty reduction (Fankhauser and Stern 2020 ). Exposure to diseases or epidemics can increase the risk of civil conflicts and violence (Cervellati et al. 2016 , 2018 ). While research has addressed effects of life-expectancy, diseases and premature mortality on long-run economic development (e.g. Ebenstein et al. 2015 ; Acemoglu and Johnson 2007 ), a thorough analysis of the climate-health-development nexus is still missing. Overall, most research carried out on the interaction between environment, climate and human health has focused on physical health and mortality. The effects of air pollution from the burning of fossil fuels or agriculture on premature deaths, cardiac conditions and respiratory diseases, for example, received not only renewed interest in the wake of recent scandals (see e.g. Alexander and Schwandt 2019 ) but have been an active field of research for a number of years (Schlenker and Walker 2016 ; Tschofen et al. 2019 ). Mental health implications like stress, anxiety or depression on the other hand have received much less attention although, for example, Chen et al. ( 2018 ) in a study on air pollution in China estimate these effects to be on a similar scale to costs arising from impacts on physical health. Also, Danzer and Danzer ( 2016 ) find substantial effects of a large energy-related disaster (the Chernobyl catastrophe) on subjective well-being and mental health. Economic research should take up the challenge and put more effort into the economic evaluation of mental health related effects of climate change and environmental degradation in general. Potential to analyze these and other health-related questions have risen substantially in the last years, method-wise as well as topical, with new large data sets becoming available. Big data from insurance companies, satellite imagery on pollution dispersion and effects of draughts, for example, can provide new insights into the dynamics between environmental changes and health. But digital technologies themselves also generate new research questions addressing, for example, risks, costs and benefits of these new technologies.

Carbon exposure and green finance The impact of climate change and of climate policy on the financial system is a topic of increasing public concern. The transition to a low-carbon economy poses a lot of challenges not only from physical risks and damages but also from transition risks. These accrue in such different areas as climate-related policy making, altered market behavior, changes in international trade patterns, technology development, and consumer behavior. To support a safe and gradual transition to a low-carbon economy, the financial sector needs to evaluate and eventually address the new risks associated with climate change and decarbonization in an efficient manner. There is widespread concern that financial markets currently lack sufficient information about the carbon exposure of assets, resulting in risks from climate change and climate policy for investments (Karydas and Xepapadeas 2018 ). If not anticipated by the markets, climate shocks also cause asset stranding, i.e. unanticipated and premature capital write-offs, downward revaluations, and conversion of assets to liabilities (Rozenberg et al. 2020 ; Bretschger and Soretz 2018 ). The same holds true for climate policies which are not or cannot be correctly anticipated by investors (Dietz et al. 2016 ; Stolbova et al. 2018 ; Sen and von Schickfus 2020 ). The growing awareness of these risks is reflected in the attention that policy makers have devoted to the development of transparency improving information systems and indicators in recent years. However, challenges related the design of these systems and indicators, e.g. with respect to an accurate and encompassing risk assessment, still remain. The importance of addressing these challenges is excerbated by prevalent network effects and counterparty risks that transmit climate-induced financial shocks from individual firms to the broad public holding their capital in stocks of fossil-fuel-related firms, investment funds, and pension funds, which all could suffer from stranded assets (Battiston et al. 2017 ). Divestment campaigns, shareholder engagement, and mandatory disclosure of climate-relevant financial information by companies and investors warrant further theoretical and empirical analysis. Also, a better understanding of the economics behind financing instruments like green bonds is only recently emerging (Agliardi and Agliardi 2019 ). Despite some early studies there is a knowledge gap with respect to the extent of climate and policy risks for central banks and regarding the potential significance of different channels connecting the risks in the real economy with monetary policy. Given the environmental and international policy perspective of the climate problem, the specific contribution of the financial sector and the central banks in the architecture of global climate policy has to be subject to further investigation.

Energy system transformation The transition from a fossil-based to a green economy is needed to combat climate change but requires a thorough transformation of energy systems (Pommeret and Schubert 2019 ) in developed as well as in developing countries. In industrialized countries, challenges arise from the structural transformation of highly complex energy systems and their linkage with other economic sectors. While one hundred years ago, it was the rapid dissemination of fossil-based industrial processes, transportation, and heating that resulted in wide-spread sectoral change, similar adjustments can be expected with the increasing importance of electricity for decarbonization. However, changing the use of energy technologies in practice involves decisions on different levels and constitutes a highly nonlinear process. Future power generation in many countries will increasingly rely on renewable energies like wind and solar energy. To offset intermittent power generation, more and better storage capacities of batteries or pumped hydropower will be needed (Ambec and Crampes 2019 ). Synthetic fuels, heat pumps, fuel cells and e-mobility will increasingly use electricity to replace fossil fuels not only in the power sector but also in traffic and heat generation. While the adoption of renewable technologies like wind and solar was often much faster than predicted in the past, the critical mass of market penetration has still to be reached in other areas to benefit from potential scale effects and cost decreases. Shape and speed of the energy transition are, however, highly dependent on a political process which is hard to predict for market participants. Policy and ecological risks, together with the long-run character of the energy and related infrastructure investments, pose a big challenge for research and practice. In this context, it is especially the economic potential of green hydrogen and/or synthetic fuels that is controversially discussed at present. As production costs are expected to fall (Glenk and Reichelstein 2019 ), interest in hydrogen is increasing sharply (IEA 2019 ) and new research questions arise. For developing countries, clean and decentralized renewable energy technologies offer big potentials for electrification and economic development. However, despite the potential for decarbonization and the reduction of other externalities and health hazards and despite the fact that more than 90% of the annual increase in power generation comes from emerging economies, research on the development and adoption of clean energy technologies still focuses mainly on the developed world. More research on the barriers and challenges for adoption in developing countries is needed, including sustainable financing, institutional framing and the design of regionally tailored policies.

Sustainability perspective on digitalization Digitalization and artificial intelligence are often seen as opportunities for enhancing the efficiency of energy and resource use. They offer new opportunities for circular economy, agriculture, monitoring of ecosystems and biodiversity, sustainable finance and decarbonization (see WBGU 2019 and literature within). However, they may also accelerate energy and resource use, increase inequality between regions and income groups and endanger sustainable development. Digitalization offers new access to markets, impacts market forms and shapes consumer behavior all of which can have extensive implications for the ecological, social and economic dimensions of sustainable development. Digitalization is a cross-cutting theme that reaches across spatial scales (from regional development to globalization) as well as temporal scales (from short-run impacts on energy systems to long-run adaptation to climate change). So far, the potentials and challenges for sustainable development that are associated with digital technologies have mostly been addressed outside of environmental and resource economics. The focus has been on topics such as data security and privacy or, for example, on the implications of the ”fourth industrial revolution” on employment and labor markets. Costs and benefits of digitization, the design and effectiveness of policies in industrialized as well as developing countries have garnered much less attention in the context of environmental, resource, energy and climate economics. Also, impacts of digitization on the behavior of economic agents resulting in, for example, rebound effects or changes in consumption patterns and environmental awareness, have not been addressed comprehensively (Gossar 2015 ). In all of these areas, our limited knowledge base creates opportunities and challenges for future research in the field. But, digitalization not only creates new research questions, it also provides new means to answer them. It has led to new developments in data science, big data analysis, machine learning and artificial intelligence that allow new insights into, for example, material flows, emission patterns and technology diffusion as well as the optimal design, implementation and effectiveness of regulation (Fowlie et al. 2019 ; Weersink et al. 2018 ; Graziano and Gillingham 2015 ).

Quantitative analysis of environmental use Recently, there has been a significant shift in the empirical methods used in economics from traditional regression analysis to random assignment and quasi-experiments. Arguably this can improve the capturing of causal relationships and reduce the biases of traditional study designs. In environmental economics, experimental and quasi-experimental approaches have been applied mainly for capturing individuals’ or firms’ decisions on the use of land, water, resources, and energy (e.g. Allcott 2011 ; Duflo et al. 2013 ; Deschenes et al. 2017 ). Wider applications of these rigorous methods in environmental economics and well-suited empirical designs are desirable but certainly challenging e.g. when assessing aggregate environmental costs from climate change or biodiversity loss. An important but underrated field in applied environmental economics is the ex-post empirical assessment of environmental policies. The challenge is not only to identify environmental externalities, causalities, and impact intensities but also to provide an accurate valuation of the cost of policies, because they vary widely especially in environmental economics. The traditional empirical methods remain to be important and are not simply replaced. The same holds true for empirical designs in a time, cross-country, or panel structure. The increasing availability of large or very large datasets with observations varying widely across time and space offers a different set of options to provide evidence on the impact of environmental damages or policies to abate them (e.g. Currie and Walker 2011 ; Martin et al. 2014 ; Zhang et al. 2018 ). Fast-growing computational power and machine learning provide even more avenues for fruitful applications in environmental economics (see e.g. Abrell et al. 2019 ) but the challenge to use computer power wisely and to derive results which are sufficiently robust remains demanding .

Structural assessment modelling and modelling transparency In an effort to better understand the ramifications of political decisions and technological developments on climate change, energy supply and resource extraction (to name but a few examples), increasingly sophisticated numerical models have been developed in recent decades. It is evident that quantitative economics analysis is important for policy advice. Yet despite their complexity, these models usually still adopt some very simplifying and sometimes ad-hoc assumptions. In particular assumptions used in integrated valuation models have come under heavy criticism in recent years (Stern 2013 ; Pindyck 2013 ). Simplifications concern market structures and market failures, the integration of risk and uncertainty as well as societal, institutional and cultural detail. Also, manifestations of climate change and damages come at very different regional and temporal scales, making a truly integrated assessment of the climate-ecosystem-economy nexus next to impossible. We see it as a major challenge for future research to provide more accurate foundations for integrated assessment models. While simplifications are needed to reduce computational complexity, they raise the question to which extent the results obtained render reliable insights into future developments. Asking for models that are detailed in every dimension and can answer every question resembles of course the search for the holy grail. However, the need for a better understanding of the model dynamics has already led to the development of a new generation of models which have a stronger foundation in theory (Golosov et al. 2014 , Bretschger and Karydas 2019 ). A better understanding of the limits of models and of the questions specific models can and cannot address is still needed as well as transparency in model development. More applied studies, assessments of global environmental trends under different economic assumptions often use ”scenarios” to describe future trajectories. The scenarios are mostly based on expert opinion and do not rely on estimates about the likelihood that such a trajectory will occur. It is also critical that the economics behind the scenarios is often neglected. Prominently, per capita income can be projected using endogenous growth theory, while population development can be evaluated using state-of-the-art theories on fertility and morbidity.

3 Conclusions

This article set out to highlight a number of challenges that are highly relevant for future research in the field of environmental and resource economics. The focus was mainly, although not exclusively, on topical issues. We only briefly touched upon on some methodological advancements that might have the power to further parts of our field. Big data, machine learning and artificial intelligence hold high promise in this regard but their limits and potentials for environment, climate and resource economics have yet to be fully understood.

It should have become clear, that a number of the challenges presented can only be addressed adequately by interdisciplinary research teams with relevant disciplines ranging from climate science, (computer) engineering, sociology, virology to soil sciences. In many cases, economists’ analysis and the derivation of sound policy recommendations require the knowledge available in these fields. However, such research cooperations are by no means one-way streets: Other disciplines need the input of economists in order to assess future development scenarios and implementability of solutions. The knowledge and data required for economics analysis does not always exist yet, but interdisciplinary cooperation can help to identify and close these gaps. Overall, the less economists have already worked on specific challenges, the harder it is to assess best research strategies and the potential for success. Take the digitization-sustainable-development-nexus as an example: best research strategies and success are extremely difficult to predict as not only is the related economics research still in its infancy but also the field itself is extremely dynamic.

As already pointed out in the beginning: We are aware that our selection is bound to create discontent and disagreement. Having said this, it should also be stated that we expect some of our challenges to be more or less universally agreed upon. This holds especially for the broader topics: for example, how to accomplish deep decarbonization; how to deal with risk and uncertainty; or how to assess the role of disruptive development. One reason for this lies in the encompassing nature of these topics. They are relevant for many of the other fields that we have pointed out: For behavioral analyses, the capacity to deal with disruptive change in the face of risk and uncertainty are essential. Loss of biodiversity and natural capital, land degradation, conflicts over resources and migration are exacerbated by climate change. The potential of digitization for sustainable development constitutes disruptive change in itself. Yet, all of these fields are not merely subfields of the more overarching themes, they raise important research questions in their own right.

Nevertheless, it is to be expected that it will be the more specific fields over which disagreement will arise: Are ‘land use and soil degradation’ more important than ‘fisheries’? Is the ‘institutional analysis of environmental policies’ of higher relevance than the ‘development of alternative welfare concepts’ (to pick out some random examples). Of course, there are more fields that could have been included and also, of course, there is no objective criterion for the inclusion or exclusion of fields. The selection of the challenges is based on the analysis and criteria presented in the first section but it is ultimately ours; we are happy if this paper contributes to a lively and constructive discussion about the future of our field.

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Economics is a vast and fascinating field that explores how individuals, businesses, and governments make decisions about the allocation of resources. As such, it provides a wealth of research opportunities for those interested in understanding and analyzing the complexities of modern society. From macroeconomic issues such as globalization and monetary policy, to microeconomic topics such as consumer behavior and market competition, there are numerous research topics that economists can investigate. In this post, we will explore some of the most interesting and relevant economics research topics that are shaping our world today.

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• The impact of the gig economy on employment and wages.
• An investigation into the causes and consequences of financial crises.
• The role of innovation in economic growth and development.
• An analysis of the impact of government spending on economic growth.
• The effects of globalization on the environment.
• The impact of climate change on economic growth and development.
• An investigation into the determinants of poverty and inequality.
• The role of entrepreneurship in economic growth and development.
• An analysis of the effects of monetary policy on economic growth and stability.
• The impact of immigration on labor markets and economic growth.
• An investigation into the factors influencing international trade flows.
• An analysis of the effects of foreign aid on economic development.
• The role of financial intermediaries in economic development.
• An investigation into the causes and consequences of income inequality.
• The impact of trade agreements on economic growth and development.
• An analysis of the effects of government regulation on business and economic growth.
• The role of technology transfer in economic development.
• An investigation into the effects of economic sanctions on trade and economic growth.
• The impact of population growth on economic development.
• An analysis of the effects of infrastructure investment on economic growth.
• The role of natural resources in economic development.
• An investigation into the effects of labor market policies on economic growth and employment.
• The impact of financial innovation on economic growth and stability.
• An analysis of the effects of income tax policy on economic growth and income distribution.
• The role of social capital in economic development.
• An investigation into the impact of economic policies on international trade.
• The effects of financial liberalization on economic growth and stability.
• The impact of urbanization on economic development.
• An analysis of the effects of international migration on labor markets and economic growth.
• The role of institutions in economic development.
• An investigation into the effects of exchange rate volatility on international trade.
• The impact of demographic change on economic growth and development.
• An analysis of the effects of government debt on economic growth and stability.
• The role of foreign investment in economic development.
• An investigation into the effects of labor market flexibility on economic growth and employment.
• The impact of intellectual property rights on innovation and economic growth.
• An analysis of the effects of economic inequality on social mobility and economic growth.
• The impact of COVID-19 on the global economy.
• The role of financial markets in economic growth.
• The effectiveness of monetary policy in stabilizing the economy.
• The relationship between income inequality and economic growth.
• The impact of government regulations on business activity.
• The role of technology in shaping the future of the economy.
• The effect of globalization on the labor market.
• The impact of trade policy on economic growth.
• The relationship between education and economic growth.
• The effectiveness of fiscal policy in stimulating economic growth.
• The impact of immigration on the labor market.
• The effect of tax policy on economic growth.
• The role of entrepreneurship in economic development.
• The impact of environmental regulations on economic growth.
• The effect of international capital flows on the economy.
• The relationship between innovation and economic growth.
• The impact of demographic changes on the economy.
• The role of infrastructure investment in economic growth.
• The effect of monetary policy on income inequality.
• The impact of government debt on economic growth.
• The relationship between corruption and economic growth.
• The effect of globalization on income inequality.
• The impact of education on income inequality.
• The role of social welfare programs in reducing poverty.
• The effect of minimum wage laws on the labor market.
• The impact of health care policy on economic growth.
• The relationship between energy prices and economic growth.
• The effect of government subsidies on business activity.
• The impact of exchange rate fluctuations on trade.
• The role of financial innovation in economic development.
• The effect of social media on consumer behavior.
• The impact of consumer confidence on economic growth.
• The relationship between economic growth and political stability.
• The effect of demographic changes on income inequality.
• The impact of government spending on economic growth.
• The role of labor unions in the labor market.
• The effect of natural disasters on the economy.
• The relationship between economic growth and environmental sustainability.
• The effect of corporate social responsibility on business activity.
• The impact of intellectual property rights on innovation.
• The effect of cultural differences on business activity.
• The impact of financial crises on the economy.
• The relationship between economic growth and health outcomes.
• The effect of government corruption on economic growth.
• The impact of demographic changes on the labor market.
• The effect of foreign aid on economic growth.
• The impact of technological change on the labor market.
• The effect of monetary policy on income distribution.
• The impact of trade agreements on economic growth
• The effect of corruption on economic development
• The relationship between financial development and economic growth
• The impact of foreign aid on economic growth in developing countries
• The role of innovation in promoting economic growth
• The impact of globalization on income inequality
• The relationship between inflation and economic growth
• The role of natural resources in economic development
• The impact of government expenditure on economic growth
• The relationship between income distribution and economic growth
• The impact of monetary policy on economic growth
• The role of education in promoting economic growth
• The impact of entrepreneurship on economic development
• The relationship between taxation and economic growth
• The impact of infrastructure on economic growth
• The role of international trade in economic development
• The impact of fiscal policy on economic growth
• The relationship between financial liberalization and economic growth
• The impact of economic integration on economic growth
• The role of institutions in promoting economic development
• The impact of foreign direct investment on economic growth
• The relationship between inequality and economic growth
• The impact of social welfare programs on economic growth
• The role of technology in promoting economic growth
• The impact of political instability on economic growth
• The relationship between corruption and economic growth
• The impact of labor market policies on economic growth
• The role of human capital in promoting economic development
• The impact of health care on economic growth
• The relationship between exchange rates and economic growth
• The impact of foreign trade on income distribution
• The role of entrepreneurship in economic development
• The impact of environmental policies on economic growth
• The relationship between foreign aid and poverty reduction
• The impact of financial sector reforms on economic growth
• The role of social capital in promoting economic development
• The impact of regional integration on economic growth
• The relationship between public investment and economic growth
• The impact of monetary policy on income distribution
• The role of international migration in economic development
• The impact of labor market flexibility on economic growth
• The relationship between trade and technology transfer
• The impact of institutional quality on economic growth
• The role of financial sector development in promoting economic growth
• The impact of regional inequality on economic growth
• The relationship between education and poverty reduction
• The impact of foreign debt on economic growth
• The role of social protection in promoting economic development
• The impact of energy policies on economic growth
• The relationship between foreign trade and environmental sustainability
• The impact of international trade on income inequality.
• The relationship between public debt and economic growth.
• The effect of tax policy on international capital flows.
• The impact of government subsidies on technological innovation.
• The role of financial development in reducing poverty.
• The effect of regulation on market structure.
• The impact of globalization on financial stability.
• The relationship between financial development and income inequality.
• The effect of fiscal policy on long-term economic growth.
• The impact of financial frictions on business cycles.
• The role of international capital flows in financial crises.
• The effect of natural resource abundance on economic growth.
• The impact of fiscal decentralization on economic growth.
• The relationship between institutions and economic growth.
• The effect of financial innovation on market efficiency.
• The impact of international migration on the labor market.
• The role of corporate governance in firm performance.
• The effect of monetary policy on the housing market.
• The impact of environmental policy on the energy sector.
• The effect of competition policy on market outcomes.
• The impact of technology adoption on productivity.
• The effect of regulation on consumer welfare.
• The impact of trade policy on export performance.
• The relationship between social capital and economic growth.
• The effect of labor market institutions on the gender wage gap.
• The impact of financial liberalization on economic growth.
• The role of human capital in technological innovation.
• The effect of trade openness on innovation.
• The impact of natural disasters on economic growth.
• The relationship between inequality and economic growth.
• The effect of exchange rate volatility on international trade.
• The impact of banking regulation on financial stability.
• The role of venture capital in financing innovation.
• The effect of regional trade agreements on economic growth.
• The impact of financial development on economic growth in emerging markets.
• The relationship between government spending and economic growth.
• The effect of monetary policy on credit markets.
• The impact of innovation on firm performance.
• The role of social networks in job search and labor market outcomes.
• The effect of international capital flows on income inequality.
• The impact of natural resource dependence on political instability.
• The relationship between financial development and income mobility.
• The effect of tax competition on fiscal policy.
• The impact of labor market institutions on unemployment.
• The role of infrastructure investment in economic development.
• The effect of monetary policy on financial market volatility.
• The impact of fiscal policy on income redistribution.
• The role of digital currencies in the future of finance.
• The effects of the gig economy on labor markets.
• The impact of artificial intelligence on economic growth.
• The relationship between climate change and economic growth.
• The role of blockchain technology in supply chain management.
• The effects of automation on the labor market.
• The impact of E-commerce on traditional retail industries.
• The relationship between social media and consumer behavior.
• The role of data analytics in business decision-making.
• The effects of globalization on income inequality.
• The impact of digital platforms on the sharing economy.
• The relationship between education and economic growth in the digital age.
• The role of fintech in financial inclusion.
• The effects of trade policies on global supply chains.
• The impact of corporate social responsibility on business performance.
• The relationship between immigration and economic growth.
• The role of venture capital in stimulating innovation and economic growth.
• The effects of the circular economy on sustainable development.
• The impact of cybersecurity threats on the global economy.
• The relationship between gender inequality and economic growth.
• The role of green finance in promoting sustainable development.
• The effects of automation on income inequality.
• The impact of the sharing economy on traditional business models.
• The relationship between human capital and economic growth.
• The role of technology transfer in international trade.
• The effects of regulatory frameworks on innovation.
• The impact of government policies on the growth of start-up companies.
• The role of venture philanthropy in social entrepreneurship.
• The effects of digital disruption on the financial services industry.
• The impact of the circular economy on job creation.
• The relationship between health outcomes and economic growth.
• The role of impact investing in social and environmental sustainability.
• The effects of trade agreements on the global economy.
• The impact of entrepreneurship on economic growth.
• The relationship between innovation and income inequality.
• The role of corporate governance in sustainable business practices.
• The effects of immigration policies on labor market outcomes.
• The impact of international capital flows on economic development.
• The relationship between corporate social responsibility and financial performance.
• The role of innovation clusters in regional economic development.
• The effects of digitalization on productivity.
• The impact of the sharing economy on urban development.
• The relationship between social entrepreneurship and economic growth.
• The role of government policies in promoting sustainable development.
• The effects of demographic changes on the economy.
• The impact of digitalization on economic development in developing countries.
• The relationship between consumer behavior and sustainability.
• The role of private equity in stimulating economic growth.
• The impact of government spending on economic growth
• The effects of minimum wage laws on employment and poverty rates
• The role of government subsidies in promoting renewable energy adoption
• The impact of trade liberalization on economic growth and income inequality
• The effectiveness of monetary policy in managing inflation and unemployment
• The determinants of foreign direct investment flows in emerging markets
• The role of financial markets in economic development
• The impact of globalization on the labor market
• The effects of tax policies on economic growth and income distribution
• The role of human capital in economic growth and development
• The economics of climate change and the environment
• The effects of population aging on economic growth and social welfare
• The impact of social safety net programs on poverty reduction
• The effects of corruption on economic development and political stability
• The impact of technological innovation on labor market outcomes
• The economics of healthcare policy and healthcare markets
• The determinants of entrepreneurship and small business success
• The effects of income inequality on economic growth and social welfare
• The economics of urbanization and regional development
• The role of foreign aid in promoting economic development
• The impact of fiscal policy on economic growth and government debt
• The effects of financial regulation on economic stability and growth
• The economics of education policy and school choice
• The determinants of consumer behavior and market outcomes
• The role of multinational corporations in the global economy
• The effects of immigration on labor markets and economic growth
• The impact of monetary policy on financial markets and stability
• The economics of natural resource management and conservation
• The determinants of industrial competitiveness and productivity
• The effects of trade policies on economic growth and regional integration
• The role of institutional quality in economic development
• The impact of technological change on income inequality
• The economics of innovation and intellectual property rights
• The effects of financial globalization on emerging markets
• The role of infrastructure investment in promoting economic development
• The impact of exchange rate policies on international trade and investment
• The determinants of consumer credit and debt behavior
• The effects of social media and online platforms on market competition
• The role of international organizations in global economic governance
• The impact of natural disasters on economic development and poverty
• The economics of gender inequality and discrimination
• The effects of government regulation on business behavior and market outcomes
• The role of behavioral economics in understanding market behavior
• The impact of public investment on economic growth and social welfare
• The determinants of household saving and investment behavior
• The economics of renewable energy and clean technology adoption
• The effects of economic sanctions on international trade and investment
• The role of information and communication technologies in economic development
• The impact of globalization on income distribution and poverty
• The economics of international migration and remittances.
• The effects of income inequality on economic development
• An analysis of the efficiency of market structures in different industries
• The role of technology in economic growth and development
• The impact of international trade on economic development
• An investigation into the determinants of inflation
• The effects of labor market regulations on employment and productivity
• An analysis of the relationship between economic growth and environmental sustainability
• The role of institutions in economic development
• The impact of foreign aid on economic development
• The effects of taxation on economic growth
• An investigation into the factors that contribute to economic fluctuations
• The effects of globalization on income distribution
• The impact of education on economic growth and development
• The role of infrastructure in economic development
• The effects of trade liberalization on economic growth
• An analysis of the impact of exchange rates on trade and investment
• The relationship between innovation and economic growth
• The impact of government policies on the agricultural sector
• The effects of corruption on economic development
• An investigation into the effects of demographic changes on economic growth
• The impact of financial crisis on economic growth
• The effects of foreign direct investment on economic growth
• An analysis of the effects of natural resources on economic development
• The impact of healthcare on economic growth
• The effects of international migration on the economy
• The relationship between poverty and economic development
• The role of infrastructure in promoting economic growth
• An investigation into the effects of regional economic integration
• The impact of foreign trade on economic development
• The effects of government regulation on economic growth
• An analysis of the role of technology in improving economic efficiency
• The impact of population growth on economic development
• The effects of government spending on income inequality
• The role of the financial system in economic growth
• The impact of energy policies on economic development
• An investigation into the effects of intellectual property rights on economic growth
• The effects of trade on labor markets
• The role of social capital in economic development
• The effects of regional inequality on economic development
• An analysis of the impact of financial market development on economic growth
• The impact of international trade on technological progress
• The effects of financial regulation on economic growth
• The role of institutions in promoting entrepreneurship
• The impact of healthcare policies on economic growth
• An investigation into the effects of income redistribution on economic growth.

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Researcher, Academic Writer, Web developer

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Economic Systems Research Latest Publications

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Processing trade in Chinese interregional input–output tables: construction and application

Systemic risk and macro-financial interconnectedness using an fsam framework, welfare impacts of a negative income tax on regions of brazil, multi-level comparisons of input–output tables using cross-entropy indicators, global value chains and labour markets – simultaneous analysis of wages and employment, structural components of income growth: an application to the evolution of the spanish economy, 1980–2014, regional co2 emissions and cross-boundary mitigation potential in china, filter methods for mrio tables: an evaluation, the true cost of trade among neighbors: the role of japanese imports in waste generation in china, measuring trade in value added: how valid is the proportionality assumption, export citation format, share document.

7 economic trends to watch in 2024

Every year has its economic challenges — some old, some new. But in an election year — where control over Congress and the White House are at stake — policies dealing with inflation, labor disruptions, the rise of artificial intelligence, and other economic issues take on added significance. Below, seven experts affiliated with the Stanford Institute for Economic Policy Research ( SIEPR ) offer their research-based insights into what’s in store for the U.S. economy in the year ahead.

“These economic policy questions are right in our wheelhouse at SIEPR, and we’re very fortunate to have more than 120 faculty members tackling pressing economic issues and generating research that leads to better policies. The fact that we are in an election year makes their work even more important as we strive to get rigorous, nonpartisan research and analysis into the hands of policymakers, candidates, business leaders and voters.”

— Mark Duggan, The Trione Director of SIEPR and The Wayne and Jodi Cooperman Professor of Economics

The consumer disconnect in an election year

Neale Mahoney , George P. Shultz Fellow at SIEPR and Professor of Economics, School of Humanities and Sciences:

The U.S. economy is strong by all objective measures, with low unemployment, robust GDP growth, and easing inflation. Yet consumer sentiment is decidedly weak, with measures of the economic indicator at levels last seen during the global financial crisis. Given the strong correlation between consumer sentiment and election outcomes, it’s especially important to understand why there’s a disconnect ahead of this November’s vote.

Ryan Cummings , a visiting PhD student at Stanford, and I recently dived into the data and documented two new findings. First, sentiment isn’t as bad as the numbers suggest due to partisan skew. While both Democrats and Republicans rate the economy more strongly when their party controls the White House, Republicans cheer louder and boo harder, in effect, drowning out Democratic voices and artificially depressing consumer sentiment.

Second, consumer sentiment is being dragged down by prior years’ inflation . While prices rose only 3.2 percent this year, they increased by a cumulative 18.6 percent over the last 3 years, and these prior price increases are still weighing negatively on consumers. However, we also found that the downward drag from inflation has a half-life of about a year. This means that, if  inflation continues to ease over the next 12 months, sentiment should improve as the post-pandemic inflation surge recedes. 

These are challenging times for forecasting. The rise of social media as a prominent information source — with its tendency to amplify bad news — may be fraying the link between economic fundamentals and consumer sentiment. The partisan factors we document may intensify as the November election approaches. How consumer sentiment will trend, and what we should be making of these data in the current environment, are questions that will only be fully answered in the course of time.

COVID-19’s lingering labor effects

Gopi Shah Goda , SIEPR Senior Fellow and Professor (by courtesy) of Economics, School of Humanities and Sciences:

The COVID-19 pandemic disrupted many sectors of the economy, including labor markets. My research with Evan Soltas estimates that excess COVID-19-related absences from work through mid-2022 resulted in approximately 500,000 fewer people participating in the labor force. Other work has shown that more working-age adults are reporting serious difficulty remembering, concentrating or making decisions, and the increases are higher among women and non-college graduates. In addition, the share of workers who are not employed and not looking for work due to disability or illness is higher than its pre-pandemic trend.

COVID has clearly had harmful effects on the U.S. workforce overall, but there’s some good news heading into 2024. Between January and October of 2023, excess COVID-19-related absences from work were approximately 15 percent higher than pre-pandemic levels. While still elevated, this represents a sharp reduction from excess absences in March 2020-December 2022, which were 61 percent higher than pre-pandemic levels.

Going forward, the lower rate of excess absences in 2023 may suggest that the recent increase in disability rates could slow down if the two are causally related. However, the growing share of the population reporting cognitive difficulties — likely from a COVID-19 infection — suggest that programs and policies may be needed to support workers still struggling with pandemic-related illnesses.

Congress' fiscal cliff problem

John Cochrane , SIEPR Senior Fellow and the Rose-Marie and Jack Anderson Senior Fellow at the Hoover Institution:

When you kick the can long enough, you run out of road. Our government’s inability to fix its finances means we’re pretty close to that point. 

The U.S. has as much federal debt now as it did at the end of WWII. The Congressional Budget Office projects debt will grow exponentially. The federal deficit is 5.8 percent of GDP, though the economy is humming. The CBO projects 3 percent of GDP primary deficits — before interest payments — forever.

The problem is not this year or next. The government has made pension and health care promises that it cannot pay for. Trillion-dollar spending on industrial policies, subsidies, transfers, and bailouts don’t help. When the next recession, crisis, war or pandemic hits, the U.S. may simply be unable to borrow.

Higher tax rates are not the answer. There aren’t enough “rich” or “corporations” to soak for this much money. We could finance our European-style benefits with European middle-income taxes, but we would get stagnant European incomes in the bargain. 

Tax revenue equals tax rate times income. Higher tax rates lead to lower long-run income, blunting revenue. The best way out is more long-term income growth.

Our mantra should be “reform” and “incentives,” not “cuts” and “austerity.” Fundamental tax reform, such as the introduction of a consumption tax, can raise substantial revenue with less economic damage. Change at the edges, such as the debate over extending the 2017 cuts, won’t address the immense problem. Reformed social program incentives can save money and help people more. Regulatory reform can speed growth. Smart immigration can bring in more taxpayers.

Year of the WFH pancake

Nicholas Bloom , SIEPR Senior Fellow and the William D. Eberle Professor of Economics, School of Humanities and Sciences:

It’s the $64,000 workplace question: Will workers continue to be allowed to work from home (WFH)? I predict the rates of WFH will, as the British say, be “flat as a pancake” this year and into 2025 before picking up again in 2026.

I’ve previously likened the WFH revolution to the Nike swoosh. From 2020 to the end of 2022, levels of WFH dropped as the pandemic-induced surge waned. In 2023 we saw rates stabilize  as attempts by employers to bring workers back into the office largely failed.

But WFH rates will start to slowly climb again. This will be driven by ever-improving technologies for remote working. We’ll see innovations around, for example, audio and visual, apps, holograms, and augmented reality. Looking back over my life, we have seen working from home go from paper-based in the 1970s and 1980s, to supported by PCs in the 1990s, with the internet in the 2000s and then cloud computing and video calls in the 2010s. 

The recent explosion in WFH has accelerated this rate of technological progress. Every hardware and software firm I talk to is targeting this massive new market of WFH employees and firms. What the future will bring is not clear, but it clearly will be better and more efficient than 2023 tech.

My message for 2024: Underneath WFH’s “pancake” year is a massive revolution. WFH is here to stay and looking to a rapidly growing future.

The need for Treasury market reforms

Darrell Duffie , SIEPR Senior Fellow and the Adams Distinguished Professor of Management and Professor of Finance, Stanford Graduate School of Business:

U.S. Treasury securities are the world’s safe-haven asset — not only because of their low default risk but also because of the depth and liquidity of the market in which they are traded. In March 2020, that safe-haven role was tested when COVID unleashed a dash for cash caused by severe selling of Treasuries. The dealers who handle essentially all investor trading of Treasuries could not adequately handle the surge of demands. Catastrophe was averted only when the Federal Reserve took unprecedented steps to restore liquidity in the market.

According to a recent Federal Reserve Bank of New York analysis that I co-authored, the crisis exposed structural weaknesses in the U.S. Treasury market that, if unaddressed, threaten its ability to remain a safe haven for global investors. The capacity of dealers to temporarily warehouse the flood of investor sales while they negotiate trades with buyers is critical. And yet, the total amount of Treasuries outstanding is growing rapidly relative to the intermediation capacity of dealers because of large and persistent U.S. fiscal deficits and the limited flexibility of dealer balance sheets. 

The resilience of the Treasury market should not be called into question just when its safe-haven role becomes critical. Significant structural improvements to the Treasury market are needed in 2024 and beyond. Policy options include broadening central clearing of Treasuries and all-to-all trade; boosting the intermediation capacity of dealers with real-time post-trade transaction reporting; improving capital regulations so they do not lower the overall capital buffers of globally systemic banks; and backstopping the Treasury market liquidity with transparent central-bank purchase programs.

The beginning of the end for non-competes

Mark Lemley , SIEPR Senior Fellow; the William H. Neukom Professor of Law, Stanford Law School; Director, Stanford Program in Law, Science & Technology :

The reinvigoration of antitrust enforcement will continue in 2024. The Federal Trade Commission in particular will continue to challenge mergers that it deems anticompetitive. It will also take a number of steps to open up the labor markets: It will ban or significantly restrict non-compete agreements that prevent workers from moving to competitors. It will challenge other restrictive employee agreements, from no-poach deals and arbitration secrecy clauses to overbroad nondisclosure agreements and "stay or pay" clauses.

These challenges will be met by skeptical courts trained in 40 years of Chicago School orthodoxy on the primacy of free markets. Entrenched companies that don’t like the idea of facing competition rather than agreeing to avoid it will howl. The November general election will likely determine the extent to which the pace of FTC enforcement continues beyond 2024. And if the FTC suffers setbacks in court, proponents of stricter enforcement may need to look to Congress to act.

For California, tough choices

Preeti Hehmeyer , Managing Director of California Policy Research Initiative (CAPRI) at SIEPR:

The coming year will be eventful for Californians, to say the least. Looking to the general election in November, many observers believe that the Golden State will be one of the most important battlegrounds for Congressional control. California also needs to climb out of its $31 billion budget deficit while dealing with the ongoing challenges of affordable housing, homelessness, extreme weather, and rising electricity costs. Politicians make the decisions, but CAPRI can help the state better understand the roots of its problems and choices going forward.

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Welcome to our latest blog post on economics research topics! Whether you are an academic seeking inspiration or a student looking for a starting point for your next assignment, you've come to the right place. 

With so many areas to explore in economics, it can be difficult to know where to begin. But don't worry, we've got your back. In this post, our online paper writers have shared some of the most interesting and hot economics research paper topics. So, grab a cup of coffee and let's dive in!

What Are Economics Research Topics?

Economics is a social science that studies how people, businesses, and governments make decisions about how to use resources. It deals with issues like production, distribution, and consumption of goods and services. 

As a student, you might be given to write a research paper on research topics in economics. These types of social science topics can cover a wide range of subjects, including:

• Macroeconomics
• Microeconomics
• International economics
• Behavioral economics, and more.

Whether you are interested in exploring current trends, global markets or history, or taxes, we collected a bunch of economics topics for a research paper to choose from. Stay with our service to spot the best idea for your upcoming project.

Characteristics of Good Economics Research Paper Topics

When it comes to selecting a research topic related to economics, it is important to decide on a subject that is not only interesting but also appropriate for your academic level. Consider these fundamental characteristics of good economics paper topics to make a wise choice:

• Select a title that is both relevant and is intended to solve a current issue.
• Choose a unique topic that has not been explored too much by other researchers.
• Make sure you can easily access the data or sources needed to create your paper.
• Consider if the topic has the potential to be of practical or social importance.
• Pick an area that genuinely interests you and will keep you motivated throughout your project.

How to Choose an Economics Research Paper Topic?

Choosing between this selection of economics project ideas can be really difficult especially if you are first to this. However, with a little bit of guidance, you will see that there is nothing challenging about picking a proper topic for a research paper in economics. Take a look at these step-by-step instructions to make the right decision:

• Brainstorm potential economics research topics that sound interesting to you in the first place. After all, you don’t want to work with boring aspects.
• Narrow your list down and consider whether there are enough resources to back up your research.
• Carry out preliminary investigation to see what you can write about. Use academic journals, newspapers, and other reputable sources to gather information.
• Check if the topic complies with your instructor’s guidelines.
• Based on your research and requirements alter a title to create a focused research question.

Remember to choose a topic that you are passionate about and that aligns with your academic and professional goals.

Economics Research Topics List

Economics is a vast field that encompasses a wide range of topics and issues. If you're looking for inspiration for your next research paper, consider exploring one of these top research paper topics in economics:

• What is the impact of trade policies on international trade patterns?
• How does income inequality affect economic growth?
• What role does entrepreneurship play in economic development?
• How do government regulations affect market efficiency?
• What are the economic implications of climate change and environmental policy?
• How do automation and artificial intelligence affect the labor market?
• What are the effects of healthcare policies on the economy and society?
• How does education influence economic outcomes?
• What are some economic aspects of taxation and fiscal policy?
• How does globalization impact domestic economies and societies?

Interesting Research Topics in Economics

Are you searching for interesting topics in economics? Look no further than these cptivting economic paper topics ideas.

• How do government policies impact income mobility?
• What role do financial institutions play in economic growth?
• Economics of housing and homelessness.
• How do immigration policies shape the labor market?
• Impact of gender inequality on economic growth.
• Sustainable development and renewable energy.
• What are some effects of globalization on income distribution?
• How do minimum wage policies impact employment and poverty?
• Economics of crime and punishment.
• How does corruption relate to economic growth?
• Effects of social welfare policies on income inequality.
• Healthcare markets and insurance systems.
• How does technology influence income distribution and employment?
• Education financing and student loan debt.
• How do economic sanctions affect international trade and diplomacy?

Good Topics for Economic Research Papers

Economics research topics are diverse and can be approached from various angles. Below are some great economic topics to write about:

• What are some effects of social media on consumer behavior and advertising?
• What is the relationship between corporate social responsibility and profitability?
• Sharing economy and its impact on traditional industries.
• How does climate change affect the tourism industry economically?
• Economics of healthcare systems and policies in developing countries.
• How does population aging influence labor markets and retirement policies?
• How does artificial intelligence impact business and employment?
• What factors are involved in energy transition and the shift to renewable energy?
• Income inequality and political polarization.
• How do digital streaming services and the music industry intersect economically?
• How does cultural diversity contribute to growth and innovation?
• Effects of trade agreements on income distribution.
• Cryptocurrency and blockchain technology.
• How does globalization impact labor standards and working conditions?
• Natural disasters and economic growth.

Best Economics Research Topics

Want to take your project to the next level? Don’t skip these hot economic research questions. They suit any academic level and can be supported by credible evidence.

• Big data and its role in economic forecasting.
• How does public debt impact economic growth?
• The economics of international migration.
• What is the impact of technological innovation on income inequality?
• The role of infrastructure investment in fostering economic growth.
• The economics of the gig economy and freelance work.
• How does foreign aid affect economic development?
• The economics of natural resource management and sustainability.
• What is the impact of urbanization on economic growth and development?
• The economics of the entertainment industry and streaming services.
• How do exchange rate fluctuations influence trade and investment?
• The economics of food production and distribution systems.
• How do government regulations affect small businesses economically?
• The study of behavioral finance and decision-making in economics.
• What is the impact of monetary policy on financial markets and inflation?

Unique Economics Research Topics

Economics is a constantly evolving field that offers endless possibilities for research and analysis. That’s why choosing unique economic research ideas shouldn’t be a big deal. Below we added a list of authentic topics you most likely won’t be able to find anywhere else.

• How does mobile banking contribute to financial inclusion in emerging economies?
• How do natural disasters affect supply chains?
• What are some effects of gender bias in venture capital funding decisions?
• How does population density influence the demand for public transportation in urban areas?
• Virtual currencies and their potential as an alternative to traditional currencies.
• How do government subsidies influence the adoption of renewable energy?
• How do industrial policies shape innovation and contribute to economic growth?
• Alternative meat and its potential impact on the food industry.
• What is the relationship between public transit availability and property values in urban areas?
• How does corruption impact economic growth and development?
• Renewable energy storage systems and their impact on grid stability.
• What are some effects of automation on job displacement and income inequality?
• Blockchain technology in the banking industry and financial transactions.
• International trade in cultural goods and services.
• How does income inequality relate to health outcomes from an economic standpoint?

Popular Economics Topics for Research Paper

Do you want to focus on current and pressing issues? Consider these trending topics for economic research papers.

• The impact of COVID-19 on the global economy.
• What are economic implications of healthcare reform?
• How does globalization affect labor markets economically?
• Climate change and the role of carbon pricing.
• Effects of income inequality on social mobility.
• How does automation impact employment and wages in the workforce?
• The economics of education and the burden of student loan debt.
• How do government regulations influence business and innovation economically?
• Income taxation and progressive taxation.
• Impact of immigration on labor markets.
• Behavioral economics and the use of nudges in decision-making.
• How do trade policies influence international relations and diplomacy?
• Mergers and acquisitions in the business world.
• How do minimum wage policies affect low-wage workers economically?
• Urbanization and transportation planning.

Economics Research Paper Topics for Students

As a student, picking decent economic topics for research papers can be a challenging task. It's important to focus on relevant and interesting aspects. Below you will find some economic research paper topics specifically geared toward students of all levels.

Economics Research Topics for College Students

College students majoring in economics have a range of choices when it comes to research topics. Below are some inspiring economic paper topics you can use as inspiration for your project in college:

• Effects of gig economy on labor markets.
• Economic growth and environmental sustainability.
• Impact of sharing economy on traditional industries.
• Housing affordability and homelessness.
• How does trade liberalization affect domestic industries and consumers?
• How does public policy influence small business growth?
• Food waste and its impact on sustainability.
• Income inequality and access to education.
• Impact of automation on the future of work.
• Online advertising and consumer behavior.
• How does fiscal policy influence income distribution and poverty reduction?
• How does tax reform impact business investment?
• Economics of international tourism and its impact on local economies.
• Effects of financial regulation on consumer behavior and investor confidence.
• Demographic shifts and labor force participation.

Economics Research Topics for Undergraduates

Are you an undergraduate student looking for topics related to economics? Here are some amazing ideas you can pick from:

• Financial implications of space exploration and commercial space travel.
• Role of urban farming in city development for sustainability.
• Impact of genetic engineering and biotechnology on the agricultural sector.
• Financial consequences of digital privacy.
• Implications of mass surveillance on consumer spending patterns.
• How do remittances influence growth in developing countries?
• Fiscal consequences of cybercrime and cybersecurity breaches.
• Role of microfinance in alleviating poverty.
• Potential financial implications of quantum computing.
• Water scarcity and its worldwide financial implications.
• Monetary consequences of epidemics, pandemics, and public health crises.
• Transformation of markets by virtual and augmented reality.
• Effect of corporate governance on shareholder value.
• Financial aspects of aging societies and pension reform.
• Role of intellectual property rights in promoting innovation and growth.

Economics Research Topics for Grad Students

Graduate students in economics are expected to delve deeper into economic theories, models, and concepts. They are also required to contribute new insights to the field. We suggest that you choose these economics topics for research to earn a high grade:

• How does drug legalization influence national economies?
• Impact of universal basic income on poverty levels and unemployment rates.
• Financial implications of political instability and conflict.
• Impact of cultural heritage sites on local and national finances.
• Financial repercussions of biodiversity loss and species extinction.
• Role of venture capital in fostering startups and growth.
• Disaster risk management and its relevance to financial resilience.
• Potential fiscal impacts of deep-sea mining.
• Financial consequences of single-use plastics and transition to a circular economy.
• Business aspects of the digital gaming industry and eSports.
• Impact of the maker movement and DIY culture on traditional manufacturing.
• How can nanotechnology shape future market economies?
• Impact of drone technology on supply chain operations.
• Financial aspects of mental health in the workplace.
• Role of public-private partnerships in fostering growth and infrastructure development.

Research Topics in Economics by Subject

Economics paper topics ideas will also depend on your area of expertise. This block will offer topics by subject, so that you can choose a theme that fits your special needs. Whether you are interested in exploring the economics of renewable energy or the effects of globalization on income distribution,you will surely spot an idea or two right below.

World Economics Research Paper Topics

The global economy is a complex and interconnected system, and there are many world economics research paper topics that can shed light on global aspects. Between them are these ideas:

• Evolving landscape of international trade in the post-COVID era.
• Role of Special Economic Zones in boosting global competitiveness.
• Impact of machine learning and artificial intelligence on global financial markets.
• How do social impact bonds contribute to global development goals?
• Cybersecurity risks in global financial institutions: Are we prepared?
• Influence of social entrepreneurship on worldwide poverty reduction.
• Green bonds and their role in global sustainable finance.
• Economic prospects of the African Continental Free Trade Area.
• Role of global remittance flows in socioeconomic development.
• Impact of climate change on global supply chains: What can we do?
• Global consequences of a cashless society: Are we ready?
• How does geopolitics affect global energy markets?
• Repercussions of cryptocurrency adoption on global financial stability.
• Economies of scale in global manufacturing: A new era?
• Role of international development assistance in achieving Sustainable Development Goals.

>> More ideas: Politics Research Topics

Microeconomics Research Paper Topics

Microeconomics studies the behavior of individuals and firms in making decisions regarding the allocation of resources. If you need microeconomics topics for research paper, we collected great ideas below:

• How do consumer ethics shape purchasing decisions?
• What influences price elasticity of demand in luxury goods markets?
• How does the gig economy affect individual financial stability?
• What are the key economic factors determining college major choices?
• How do credit scores influence personal finance management?
• What impacts have peer-to-peer lending platforms had on traditional banking?
• What drives consumer decisions between online and brick-and-mortar shopping?
• How do economic considerations play into personal retirement planning?
• What market dynamics and pricing strategies dominate the smartphone industry?
• How does behavioral economics impact personal savings habits?
• How significantly does brand loyalty influence consumer spending?
• What strategies help businesses survive during economic downturns?
• How does corporate social responsibility influence consumer choice?
• What role does digital marketing play in shaping consumer behavior?
• What are some economic impacts of identity theft on individuals and businesses?

Macroeconomics Research Paper Topics

Unlike microeconomics, macroeconomics explores the behavior and performance of entire economies. Below are some awesome macroeconomics research paper topics:

• Exploring connections between inflation and unemployment.
• Impact of quantitative easing on long-term economic growth.
• How does fiscal deficit affect a country's economic stability?
• The role of central banks in managing economic downturns.
• Effects of government debt on interest rates and investment.
• What factors contribute to business cycles and economic fluctuations?
• Examination of macroeconomic factors influencing foreign direct investment.
• How do monetary policies impact inflation and unemployment rates?
• Role of technology advancements in macroeconomic productivity.
• Impact of demographic changes on long-term economic growth.
• Can green investment stimulate economic recovery?
• What role do exchange rates play in a country's trade balance?
• Comparative analysis of economic growth models.
• Macroeconomic challenges of transitioning to a low-carbon economy.
• How does income inequality affect economic growth at a macro level?

Economics Research Paper Topics on International Trade

International trade is a vital part of the global economy and has a significant impact on development, and international relations. Here are unique topics for an economic research paper focusing on international trade:

• Impact of Brexit on international trade relations.
• How do currency fluctuations affect international trade?
• Economic consequences of trade wars: A case study of U.S.-China relations.
• Role of World Trade Organization in shaping international trade norms.
• How does international trade contribute to economic growth?
• Evaluation of free trade agreements and their economic implications.
• Role of emerging markets in shaping the future of international trade.
• How do trade barriers influence domestic industries?
• Fair trade vs. free trade: An economic analysis.
• Global supply chain disruptions: Lessons from the COVID-19 pandemic.
• Effects of international trade on income distribution within countries.
• Economic impact of sanctions on international trade.
• How do intellectual property rights issues affect international trade?
• Role of e-commerce in transforming international trade.
• What are the economic consequences of offshore outsourcing on international trade?

Financial Economics Research Topics

Financial economics is a subfield of economics that focuses on financial markets, institutions, and instruments. Here are outstanding financial economic topics for a paper:

• Role of FinTech in shaping the future of banking.
• Analysis of risk management strategies in investment banking.
• How do hedge funds contribute to financial market stability?
• Impact of regulatory changes on financial market competitiveness.
• How does financial literacy influence individual investment decisions?
• Examination of financial derivatives and their role in financial risk management.
• Role of central banks in maintaining financial stability.
• Analysis of market efficiency in cryptocurrency markets.
• How do financial crises affect economies in the long term?
• Financial inclusion and the role of mobile banking.
• Impact of corporate governance on financial performance.
• Examination of the link between financial markets and economic growth.
• High-frequency trading: Impact on financial market stability.
• Effect of algorithmic trading on financial market efficiency.
• How do interest rate changes impact financial markets.

Development Economics Research Topics

Development economics studies the economic and social development of low-income countries. With this branch in mind, we prepared a list of development economic research paper topics ideas:

•  Role of microfinance in economic empowerment in developing countries.
• How do infrastructure projects affect economic development?
• How do cultural factors shape economic progress in developing countries?
• Impact of corruption on resource allocation in developing nations.
• Impact of foreign aid on economic growth in recipient countries.
• Evaluation of agricultural policies on rural development.
• How do commodity price fluctuations affect developing economies?
• Implications of population growth on resource management in emerging economies.
• How does political stability influence economic growth in developing countries?
• Impact of public health initiatives on economic development.
• Analysis of sustainable development strategies in emerging economies.
• How do migration patterns affect economic development?
• How does technological adoption improve productivity in developing economies?
• Role of social entrepreneurship in sustainable economic development.
• How does tourism influence the economic development of low-income countries?

Behavioral Economics Research Paper Topics

Behavioral economics combines insights from psychology and economics to understand how people make financial decisions. Below you can find behavioral economics research topics:

• Impact of cognitive biases on economic decision making.
• Role of emotions in consumer purchasing behavior.
• How does social influence shape spending habits?
• What are the economic implications of procrastination?
• Nudging for good: Can behavioral economics promote healthier lifestyles?
• How does framing influence consumers' perception of price and value?
• Role of incentives in shaping individual and collective behavior.
• Examination of loss aversion in investment decisions.
• Analysis of irrational behaviors in financial markets.
• Behavioral economics in policy design: What works and why?
• How does choice overload affect consumer decision making?
• The effect of anchoring bias in pricing strategies.
• Role of behavioral economics in promoting sustainable consumption.
• How does scarcity mindset affect economic decisions?
• Behavioral economics and personal finance: How to avoid common pitfalls?

>> Read more: Psychology Topics to Research

Environmental Economics Research Topics

Environmental economics investigates the interaction between economic systems and the natural environment. This subfield also offers multiple perspectives for exploration. Here are some examples of project topics on economics with emphasis on environment:

• Examining the economic impacts of biodiversity loss.
• Impact of environmental policies on manufacturing industries.
• Role of renewable energy investments in economic growth.
• Does a carbon tax impact economic competitiveness?
• Economic analysis of water resource management.
• How do natural disasters affect economic performance?
• The economic value of ecosystem services.
• Cost-effectiveness of different strategies for reducing greenhouse gas emissions.
• Role of environmental economics in climate change mitigation.
• How does waste management contribute to sustainable economic growth?
• The effects of air pollution on economic productivity.
• What is the economic impact of deforestation?
• Evaluation of economic tools for managing plastic waste.
• Economics of transitioning to a circular economy.
• How does sustainable agriculture contribute to economic development?

>> View more: Environmental Research Topics

Health Economics Research Topics

Health economics examines how health care practices affect the health outcomes of individuals and whole populations.  Take a glance at these health economics research paper topics:

• Economic impact of pandemics on healthcare systems.
• Role of telemedicine in healthcare cost reduction.
• How do health insurance policies influence medical spending?
• Economic analysis of mental health issues and treatment access.
• The cost-effectiveness of preventative healthcare measures.
• Evaluating the economic burden of chronic diseases.
• Economic implications of antibiotic resistance.
• How does socioeconomic status influence health outcomes?
• Impact of aging populations on healthcare costs.
• Evaluation of the economic benefits of vaccination programs.
• The effect of medical technology advancements on healthcare costs.
• Role of behavioral economics in health promotion and disease prevention.
• How does health literacy influence healthcare utilization and costs?
• Economic analysis of substance abuse treatment.
• Evaluating the economic impacts of health policy reforms.

>> Read more: Public Health Topics for Research

Extra Research Topics for Economics

Sometimes, finding the right idea can be a challenging task. However, there are numerous resources available to help you find unique angles. Also, don't be afraid to ask your professors or research paper writer team for suggestions on the selection process. But if you don’t have enough time, we gathered some supplementary economics research topics.

Economics Essay Topics

An economics essay can cover a broad range of topics, from macroeconomic issues such as international trade and monetary policy to microeconomic aspects such as consumer behavior and market structure.

• Can an increase in minimum wage curb poverty?
• What are the potential economic effects of Brexit?
• Impact of income inequality on societal cohesion.
• How does the rise of remote work influence economic structures?
• Examination of the economic benefits of public libraries.
• Role of the informal economy in urban development.
• Economic implications of increasing life expectancy.
• How does piracy impact the music and film industry economically?
• Impact of subsidies on agricultural economies.
• Exploration of the economic factors influencing the housing market.
• Analysis of the economic costs of obesity.
• Role of child labor in global supply chains.
• Examination of the economic implications of internet censorship.
• Impact of single-use plastics on local and global economies.
• Economic effects of urban green spaces.

Economics Topics for a Short Project

If you need to complete a short assignment, you may want to consider project topics in economics that can be analyzed within a limited timeframe. Don’t worry. We’ve added some simple ideas as well:

• Examining the economic impacts of online privacy breaches.
• Role of advertising in shaping consumer behavior.
• Analysis of the economic effects of natural disasters.
• Economic implications of self-driving cars.
• Role of cooperatives in the economy.
• Impact of e-waste on developing economies.
• The role of micro-credit in alleviating poverty.
• Examining the economic impacts of space exploration.
• How do online reviews influence consumer purchasing decisions?
• Economics of disaster recovery: Case studies.
• Examination of the economic implications of cybercrime.
• Impact of nutritional labeling on consumer behavior and market outcomes.
• Economic analysis of the craft beer industry.
• Examining the economic effects of animal agriculture.
• How do tax incentives influence corporate behavior and economic outcomes?

Economics Research Questions

Formulating a research question is a crucial step in conducting an economics research project. A good research question should be specific, measurable, and relevant to the topic under study. Here are some economics research questions to consider:

• How does widespread adoption of digital currencies impact traditional banking?
• To what extent do economic factors contribute to obesity rates?
• What are the consequences of large-scale solar power adoption?
• How do parental leave policies shape labor markets?
• What impacts do large-scale data breaches have on corporations?
• Does green urban planning significantly contribute to city development?
• How much does mental health contribute to workplace productivity?
• What effects do fair trade agreements have on farmers in low-income countries?
• How valuable are clean oceans for global trade?
• How does political stability of a country influence foreign investments?
• What are the consequences of patent wars in the tech industry?
• How does the rise of freelancing shape labor laws?
• What economic implications does the rise of eSports have?
• How does nutrition education impact economic health?
• What are some benefits and drawbacks of commercial space tourism?

Economics Research Topics for Exams

If you're preparing for an exam, it's important to have a good understanding of the concepts and theories that you'll be tested on. To help you prepare, we offer these economics research topics for exams to study:

• Implications of autonomous vehicles on transportation.
• Role of trade unions in contemporary job markets.
• Analysis of gender disparities in retirement savings.
• Influence of corporate social responsibility on brand reputation.
• How do plant-based diets influence the global meat industry.
• Evaluating efficiency of ride-sharing platforms.
• Role of drones in shaping future commercial landscapes.
• How public health initiatives influence workplace productivity.
• Exploring the potential economic impact of asteroid mining.
• How does fashion industry affect global economy and environmental sustainability?
• Impact of video-on-demand services on traditional film industries.
• Role of social entrepreneurship in poverty alleviation.
• Role of energy-efficient appliances in electricity markets.
• Influence of shifting demographics on global trends.
• How does celebrity endorsement influence consumer buying behavior?

Economics Research Paper Topics for Experts

For those who are already experts in the field of economics, finding 100% original economics research topics can be an uphill struggle. But not with ideas attached below:

• How does quantum computing pose an economic challenge to cybersecurity firms?
• How do gene editing technologies affect agricultural markets?
• In what ways does space commercialization affect global economies?
• How does increased lifespan influence retirement and pension systems?
• Financial viability of carbon capture and storage.
• Influence of ethical consumerism on global supply chains.
• How have nanotechnologies impacted manufacturing sectors?
• Impact of rising sea levels on coastal economies.
• Role of predictive analytics in preventing financial fraud.
• Examining the economic consequences of major oil spills.
• How does deep face technology pose an economic challenge to film industries?
• Economic impacts of large-scale reforestation.
• Implications of extensive antibiotic resistance.
• Impacts of geopolitical tensions on global oil prices.
• Universal basic income as a solution for automation-induced job loss.

Bottom Line on Economics Papers Topics

Hopefully, by now you have found a perfect economics research paper topic. Make sure you can find enough evidence to back up your points. But if you have any difficulties with the research or writing process, consider to buy coursework or any other project from academic experts.

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Human Capital Spillovers and Health: Does Living Around College Graduates Lengthen Life?

Equally educated people are healthier if they live in more educated places. Every 10 percent point increase in an area’s share of adults with a college degree is associated with a decline in all-cause mortality by 7%, controlling for individual education, demographics, and area characteristics. Area human capital is also associated with lower disease prevalence and improvements in self-reported health. The association between area education and health increased greatly between 1990 and 2010. Spatial sorting does not drive these externalities; there is little evidence that sicker people move disproportionately into less educated areas. Differences in health-related amenities, ranging from hospital quality to pollution, explain no more than 17% of the area human capital spillovers on health. Over half of the correlation between area human capital and health is a result of the correlation between area human capital and smoking and obesity. More educated areas have stricter regulations regarding smoking and more negative beliefs about smoking. These have translated over time into a population that smokes noticeably less and that is less obese, leading to increasing divergence in health outcomes by area education.

Bor and Cutler thank the National Institute for Aging, and Glaeser thanks the Taubman Center for State and Local Government for financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

I have received speaking fees from organizations that organize members that invest in real estate markets, including the National Association of Real Estate Investment Managers, the Pension Real Estate Association and the Association for International Real Estate Investors.

MARC RIS BibTeΧ

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7 facts about Americans and taxes

Spring reliably brings a whirlwind of number-crunching and form-filing as Americans finish their tax returns. Altogether, the IRS expects to process more than 160 million individual and business tax returns this season.

Ahead of Tax Day on April 15, here are seven facts about Americans and federal taxes, drawn from Pew Research Center surveys and analyses of federal data.

Ahead of Tax Day 2024, Pew Research Center sought to understand Americans’ views of the federal tax system and outline some of its features.

The public opinion data in this analysis comes from Pew Research Center surveys. Links to these surveys, including details about their methodologies, are available in the text.

The external data comes from the U.S. Office of Management and Budget and the IRS Data Book . Data is reported by fiscal year, which for the federal government begins Oct. 1 and ends Sept. 30. For example, fiscal 2024 began Oct. 1, 2023, and ends Sept. 30, 2024.

A majority of Americans feel that corporations and wealthy people don’t pay their fair share in taxes, according to a Center survey from spring 2023 . About six-in-ten U.S. adults say they’re bothered a lot by the feeling that some corporations (61%) and some wealthy people (60%) don’t pay their fair share.

Democrats are far more likely than Republicans to feel this way. Among Democrats and Democratic-leaning independents, about three-quarters say they’re bothered a lot by the feeling that some corporations (77%) and some wealthy people (77%) don’t pay their fair share. Much smaller shares of Republicans and GOP leaners share these views (46% say this about corporations and 43% about the wealthy).

Meanwhile, about two-thirds of Americans (65%) support raising tax rates on large businesses and corporations, and a similar share (61%) support raising tax rates on households with annual incomes over $400,000. Democrats are much more likely than Republicans to say these tax rates should increase.

Just over half of U.S. adults feel they personally pay more than what is fair, considering what they get in return from the federal government, according to the same survey.

This sentiment has grown more widespread in recent years: 56% of Americans now say they pay more than their fair share in taxes, up from 49% in 2021. Roughly a third (34%) say they pay about the right amount, and 8% say they pay less than their fair share.

Republicans are more likely than Democrats to say they pay more than their fair share (63% vs. 50%), though the share of Democrats who feel this way has risen since 2021. (The share among Republicans is statistically unchanged from 2021.)

Many Americans are frustrated by the complexity of the federal tax system, according to the same survey. About half (53%) say its complexity bothers them a lot. Of the aspects of the federal tax system that we asked about, this was the top frustration among Republicans – 59% say it bothers them a lot, compared with 49% of Democrats.

Undeniably, the federal tax code is a massive document, and it has only gotten longer over time. The printed 2022 edition of the Internal Revenue Code clocks in at 4,192 pages, excluding front matter. Income tax law alone accounts for over half of those pages (2,544).

The public is divided in its views of the IRS. In a separate spring 2023 Center survey , 51% of Americans said they have an unfavorable opinion of the government tax agency, while 42% had a favorable view of the IRS. Still, of the 16 federal agencies and departments we asked about, the IRS was among the least popular on the list.

Views of the IRS differ greatly by party:

• Among Republicans, 29% have a favorable view and 64% have an unfavorable view.
• Among Democrats, it’s 53% favorable and 40% unfavorable.

On balance, Democrats offer much more positive opinions than Republicans when it comes to most of the federal agencies we asked about. Even so, the IRS ranks near the bottom of their list.

Individual income taxes are by far the government’s largest single source of revenue, according to estimates from the Office of Management and Budget (OMB).

The federal government expects to collect about $2.5 trillion in individual income taxes in fiscal year 2024. That accounts for nearly half (49%) of its total estimated receipts for the year. The next largest chunk comes from Social Security taxes (including those for disability and retirement programs), which are projected to pull in $1.2 trillion this fiscal year (24%).

By comparison, corporate income taxes are estimated to bring in $612.8 billion, or 12% of this fiscal year’s federal receipts. And excise taxes – which include things like transportation trust fund revenue and taxes on alcohol, tobacco and crude oil – are expected to come to $99.7 billion, or 2% of receipts.

American tax dollars mostly go to social services. Human services – including education, health, Social Security, Medicare, income security and veterans benefits – together will account for 66% ($4.6 trillion) of federal government spending in fiscal 2024, according to OMB estimates.

An estimated 13% ($907.7 billion) will go toward defense spending. Another 13% ($888.6 billion) will repay net interest on government debt, and 10% ($726.9 billion) will fund all other functions, including energy, transportation, agriculture and more.

Related: 6 facts about Americans’ views of government spending and the deficit

The vast majority of Americans e-file their taxes, according to IRS data . In fiscal 2022, 150.6 million individual federal income tax returns were filed electronically, accounting for 94% of all individual filings that year.

Unsurprisingly, e-filing has become more popular since the turn of the century. Fiscal 2000, the earliest year for which comparable data is available, saw 35.4 million individual income tax returns filed electronically (including those filed over the phone). These accounted for just 28% of individual filings that year.

By fiscal 2005, more than half of individual income tax returns (52%) were filed electronically.

Note: This is an update combining information from two posts originally published in 2014 and 2015.

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Anna Jackson is an editorial assistant at Pew Research Center

Americans’ Top Policy Priority for 2024: Strengthening the Economy

Congress has long struggled to pass spending bills on time, what the data says about food stamps in the u.s., inflation, health costs, partisan cooperation among the nation’s top problems, economic ratings are poor – and getting worse – in most countries surveyed, most popular.

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Centralization trend in global urban transportation systems can yield data to help make those systems more efficient and popular

Designing a public transit network: Evidence from Jakarta, Indonesia . Rema Hanna, Arya Gaduh, Tilman Graff, Gabriel Kreindler, Benjamin Olken, VoxDev (December 6, 2023) 

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What’s the issue?

Urban public transportation networks in megacities have historically been highly fragmented, informal, inefficient, and frustrating for users who depend on them. This has led to a global trend toward centralization and standardization to improve service.  

This trend toward centralization has yielded a beneficial byproduct: the collection of vast amounts of passenger and route data that can be used to holistically redesign city-wide networks. When researchers collaborate closely with transportation managers, those systems can become more user-friendly and support economic development.

What does the research say?

TransJakarta, the bus system serving greater Jakarta, Indonesia, undertook a four-year expansion of its network in 2016, tripling its routes and doubling the number of buses in operation. Realizing the value of data from that expansion, they also improved fare collection infrastructure to better enforce how passengers use fare cards to tap in and tap out of buses, resulting in a 40% increase in the passenger tap out rate.

A team of researchers, including HKS’s Rema Hanna, worked with large amounts of data from tap cards, bus GPS monitors, and other sources. The researchers learned a number of practical takeaways, including that decreasing wait times has a larger impact on bus ridership than on other forms of transport and that passengers are more averse to waiting for a bus than spending additional time on one. 

More significantly, the researchers used the data to design a better transport network that could shave an average of 23 minutes of travel time off every bus trip. The researchers believe this case study demonstrates the potential role of data-driven urban transport network design in planning thriving cities around the world. 

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The pandemic’s silver lining—a treasure trove of data on social protection programs, media narratives have generally blamed democrats for housing crises in cities. research suggests that is not the full story., how hks is making a difference in these three cities.

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Recommender Systems for Human Resources

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This Research Topic, developed in conjunction with the 4th Workshop on Recommender Systems for Human Resources (RecSys in HR 2024) , explores the dynamic interplay between Artificial Intelligence (AI) and Human Resources (HR) Technologies. Focusing on Recommender Systems (RecSys) as a prime example of AI applications, this themed article collection provides a comprehensive view of their role in the HR domain. Amid the widespread adoption of AI technologies in HR, with over 250 commercial AI-based tools available, this collection serves as a platform to examine the specific aspects, challenges, and opportunities of integrating RecSys and other HR Tech applications. Encompassing the entire HR spectrum, beyond recruitment, the edition emphasizes RecSys in the full employee lifecycle, up- and re-skilling, retention, compensation, and broader economic and societal consequences. It delves into under-represented research areas like explainability, fairness, and ethics in RecSys within HR. Recent global developments, such as labour shortages, economic shifts, and impending legal changes, underscore the urgency and relevance of this edition. The rise of Large Language Models and generative AI, along with imminent legislation like the EU AI Act, further highlights the evolving landscape of HR Tech. Contributions are welcomed from academia, industry, and government, fostering a multidisciplinary approach within the Recommender Systems section. Submissions may include original research on RecSys and HR Tech applications, interfaces for decision-making tools, considerations of bias and ethics, and discussions on economic and societal consequences. The editors encourage submissions on novel recommendation approaches, user studies, case studies, and expert recommendations, all framed within Recommender Systems as a key AI application in HR. This Research Topic aims to significantly contribute to understanding the intricate relationship between AI technologies, particularly Recommender Systems, and the evolving landscape of Human Resources within the realm of Big Data.

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