This paper reviews the evolution of the field of environment and development over the last two decades. I argue that a central concern of the field has been the relation between natural resource use, income and growth, under the institutional and market conditions that prevail in developing countries. Particular attention is paid to the demographic and other drivers of change in the asset base, the linkages between poverty, property rights and the allocation of natural resources, the valuation of environmental assets and investment of resource rents, and the development of policies for managing environmental externalities and environmental public goods. I consider how the balance between topics and the treatment of individual topics has changed over time, and indicate how the field might be expected to move in the future.

This article reviews the history of the Environment for Development (EfD) initiative, its activities in capacity building and policy-oriented research, and case studies at its centres in Chile, China, Costa Rica, Ethiopia, Kenya, South Africa and Tanzania. EfD promotes research-based policies to manage natural resources as engines of development. Since 1991, the Swedish International Development Cooperation Agency (Sida) has provided funding for students from developing countries to earn a PhD at the Environmental Economics Unit (EEU) of the University of Gothenburg. Returning home, these economists face institutional and academic gaps that limit the adoption of research-based policies. In response, the first EfD centre was founded in 2004, and six more followed. Research focuses on agriculture, climate, fisheries, parks, wildlife, forestry, energy and policy design. This has yielded 200 peer-reviewed articles. Successful policy outcomes depend on relationships with policy makers, community involvement in livelihood strategies, strengthened institutional support, interdisciplinary approaches, and dissemination of research results.