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Review of Environmental Economics and Policy Advance Access published online on February 27, 2008
Review of Environmental Economics and Policy, doi:10.1093/reep/rem025
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© The Author 2008. Published by Oxford University Press on behalf of the Association of Environmental and Resource Economists. All rights reserved. For permissions, please email: journals.permissions@oxfordjournals.org

Environmental Economics at the World Bank

Susmita Dasgupta, Kirk Hamilton, Stefano Pagiola* and David Wheeler**

The World Bank plays a critical role in promoting economic development in cooperation with governments, NGOs, universities, think tanks, and other development institutions. Environmental economics entered the intellectual mainstream at the World Bank in 1992, the year in which "Development and the Environment" was published in the Bank's flagship World Development Report series. Since 1992, environmental economics has exerted a modest but increasing influence on the World Bank's research, lending, technical assistance, and policy dialogue with developing countries. The Bank has made significant investments in the development of green macro-accounting, environmental valuation for project assessment, innovative environmental policy reforms, and internal budgetary systems for the allocation of environmental lending and technical assistance. It has also supported a broad research program that has applied the techniques and insights of environmental economics to the full spectrum of environmental problems in developing countries. In the process, the Bank's lending and technical assistance have begun the transition from rhetorical to practical support for sustainable development.

* Authors’ names in alphabetical order. Kirk Hamilton, Stefano Pagiola, and Susmita Dasgupta are environmental economists in the World Bank's Environment Department and Development Research Group.

** David Wheeler is a Senior Fellow at the Center for Global Development.

The findings, interpretations, and conclusions in this paper are entirely the authors’. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent.


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