Economics was regarded as a market, money, inflation, banking, and government budget topic for many years. Today, that’s not sufficient. The world is in a new dawn where the economy is not sustainable without climate, sustainability, clean energy, responsible consumption and social impact. The green economy is a new stage, defining some of the most significant job prospects for the upcoming generation.

It’s a significant time for students who are thinking about their undergraduate studies. The decision on a degree is no longer just one that will lead to a job. It is all about how to grow without harming the future: this is the common question of industries, governments, banks, start-ups and global organisations.

This is where a BA (Hons) degree comes in. This is where a BA (Hons) degree steps in. The situation becomes very pertinent in economics.

Economics enables students to gain insight into the way resources are utilised, the way choices are made, the way policy is developed, the way businesses react to change and how societies can move towards improved outcomes. If this is translated to Sustainability, Climate Action and Green Growth, then Economics is one of the strongest degrees for students seeking to pursue a career that is both viable and has a social impact.

What does the term ‘Green Economy’ mean?

The green economy is an economy that looks at growth, employment, development, and minimises the damage to the environment. It covers renewable energy, electric mobility, waste management and sustainable agriculture and farming, green finance, climate policy and climate markets, responsible manufacturing, ESG reporting, and circular economy.

The green economy in simple terms is about smart development. It does not mean that countries should cease their growth. It is said that growth should occur in an efficient, inclusive and sustainable manner.

For instance, if any business can decrease waste, it will not only save money, it will also help the environment. An EV city means cleaner air and better public health. A bank’s support of clean growth is achieved when it issues financing for renewable energy projects. A company that implements ESG becomes more responsible and appealing to investors. All these decisions make use of economics.

Why Green Economy is the trending career area?

The green economy is not just a matter of environmentalists or science labs. It has found its way into the boardrooms, policy discussions, financial institutions, start-ups and universities. Employers are looking for individuals with the knowledge to see sustainability as not only a moral obligation but also a business strategy.

Organisations around the globe are seeking individuals who have the skills to assess climate risk, assess sustainable investment, create better policies, measure social impact and understand the economics of clean growth. This is driving a need for students who have analytical skills and sustainability consciousness.

One would expect to learn the idea of trade-offs from an Economics student. For example, would a nation be better off spending extra money on coal-fired power, as the cost of this energy is lower now, or on renewable energy, which will be more effective in the long term? If a company is producing plastic waste, then is it better to use cheaper packaging or more sustainable packaging, even though the cost of doing so is higher? Should an EV be subsidised by the government? Should there be a carbon tax?

It is not only an environmental question. These are economic issues.

The Economics of Sustainability teaches the logic behind sustainability.

Emotional discussion of sustainability is one thing, but there is also a need for logical and evidence-based decision-making. Economics supplies that basis.

The principles of cost-benefit analysis, externalities, public goods, market failure, incentives, taxation, subsidies, consumer behaviour, welfare, and development are all directly related to sustainability.

A negative externality can be seen with pollution, for instance. A factory can make a profit by making goods, but if it pollutes the air or water resources, society has to pay for that. Economics aids students to understand the reason for such problems and how to fix them with regulation, taxation, innovation, or incentives.

Likewise, clean air, biodiversity and the stability of the climate are public goods. They are for everyone, but no one or company wants to pay the price to protect them. The students can understand why government intervention and collective responsibility are needed through the help of economics.

That is why it is crucial to have Economics students in the green economy. Not only are they saying sustainability is important, but they are doing it. They can articulate how it can be measured, funded, developed, and enhanced.

Green Finance: An opportunity for economics students.

Green finance is one of the fast-growing fields related to the green economy. Green finance is the financing of projects that promote environmental sustainability. This encompasses energy, transportation, infrastructure, housing, waste management, water management and sustainable development.

Professionals are now needed by banks, financial institutions, investors and companies to assess the financial viability and environmental responsibility of a project. They require individuals with risk/return, policy and regulation, and impact business sense.

An Economics student can develop a solid career in this field through financial economics, investment analysis, data interpretation, sustainability metrics and public policy. Roles can include ESG analysis, sustainable investment research, climate risk assessment, green project evaluation and impact consulting.

This is particularly relevant in India, where the demand for sustainable infrastructure, clean energy, and inclusive development is on the rise.

ESG and Corporate Responsibility

ESG is an acronym for Environmental, Social, and Governance. It has emerged as a significant factor in the assessment of companies. An increasing number of investors, regulators, customers, and employees are asking if a company is responsible about the environment, society, and ethical governance.

This opens a new space for the study of Economics for students.

An Economics student can debate the credibility of a company’s sustainability statements, assess if sustainability policies lead to improved stakeholder welfare, consider whether operations can be performed at an acceptable cost, and evaluate if the performance of the company’s ESG has an impact on investment decisions.

If a firm cuts water consumption, enhances workplace practices and maintains open and honest corporate management, for instance, it could be more appealing to investors. However, these decisions must be analysed, reported and interpreted. Students with backgrounds in economics can effectively participate in this field as they have been trained in data, policy, finance and decision-making.

Career pathways in the Green Economy

Governments have a pivotal role in the green transition. Cautious economic thinking is needed in relation to policies on renewable energy, electric vehicles, carbon emissions, urban planning, agriculture, pollution control and sustainable development.

A badly formulated policy can end up as a burden on the finances or not change behaviour. If industries and citizens could be encouraged to adopt more sustainable practices, it could be through a well-designed policy.

Economics students can pursue careers in policy research organisations, government projects, think tanks, development organisations, consulting firms, and international agencies. They can be used to facilitate studies of climate policies, energy economics, urban sustainability, employment creation, rural development and environmental regulation.

The BA (Hons) programme is suitable for students who wish to pursue careers in the civil service or public policy or development studies. Economics offers an excellent academic foundation for tackling the issues of growth in India.

Sustainability is Also a Business Strategy

A lot of students believe sustainability is merely the domain of government policy/social service. This is no longer the case. Sustainability is also a business strategy.

Businesses that save on energy save on costs. Businesses that are making a commitment to sustainable procurement strengthen their brands. Businesses that recognise environmental risk do not incur losses. Innovation in green products will open new markets. Young companies developing in the fields of electric mobility, recycling, clean technology, sustainable fashion, climate data and waste solutions are developing new business models.

Pricing, demand, markets, the behaviour of consumers, allocation of resources, and incentives are areas in which economics students can contribute. The same ideas will decide the success or failure of a sustainable product or service.

For instance, why purchase an electric vehicle? Is it for the fuel savings, the environment, government support or because of social standing? What is the connection between the price of sustainable products and the price of non-sustainable ones? How is it that a company can charge for green products without the loss of customers? These are questions that can be answered by Economics.

Why BA (Hons) Economics at The NorthCap University?

The BA (Hons) Economics programme at The NorthCap University can equip students with the clarity and confidence they are looking for when facing these real-life problems. An effective Economics education enables students to relate theory to practice, ideas to questions of policy, analysis to choices and decisions.

NCU’s students have an opportunity to build a core understanding of economic theory, quantitative techniques, research, data analysis, public policy, and applied learning. Such academic experiences are beneficial for students interested in sustainable professions like green finance, ESG, policy research, sustainable business, development consulting, and data-driven decision-making.

Studying Economics in a future-oriented context is good because students do not see the world in pieces. They develop an understanding of how business relates to society, policy relates to people, data relates to decision-making and growth relates to responsibility.

What Kind of Student Should Choose This Path?

BA (Hons) Economics is appropriate for the student who is interested in the world and how decisions influence people, businesses and society. It is suitable for students who like reading, analysing, discussing, writing, calculating, researching and questioning.

Environmental science isn’t the only class that can be focused on by a student with an interest in sustainability. Economics is a great option if the student wishes to learn about the economic aspect of sustainability.

This is particularly beneficial for students interested in careers in finance, research, policy, analytics, consulting, the development sector, sustainability, and higher education.

The Future Needs Economists Who Care

The future will be influenced only in part by people who develop technology. It will also be influenced by people who know how technology, resources, markets, policies and people interact. Such thinkers are required for the green economy.

The development journey of India will need the help of professionals who can help in the economic development of the country, while keeping environmental and social protection in mind. This needs to be more than just being aware of it. It is an analytical, empirical, empathetic and decision-making process.

BA (Hons) Economics gives students this foundation.

It encourages them to ask tough questions, consider options, understand how things are compromised, and develop more effective solutions. With sustainability being integral to every profession, Economics is providing students with an exciting opportunity to be part of the future.

The green economy is not a far-fetched concept. It is already here.

For those who are seeking meaningful and flexible, career-oriented and socially relevant degrees, BA (Hons) Economics can be one of the shrewd purchases. At The NorthCap University, Economics is more than just studying the economy. It’s more about teaching students to be responsible for its form.

Author
Dr. Priyanka Banerji
Associate Professor
Department of Management & Commerce
The NorthCap University