Environmental Economics and the Sustainable Development Goals: Examining Their Interconnections and Implementation Challenges

Increasing environmental pressures, natural resource depletion and the ecological consequences of economic activity have intensified the need to reconsider the relationship between economic development and environmental sustainability. Within this context, environmental economics offers several approaches for addressing environmental challenges and supporting the United Nations Sustainable Development Goals (SDGs). Nevertheless, the effectiveness of these approaches remains influenced by economic, institutional and social constraints that may limit their practical implementation. Drawing upon existing academic literature, institutional reports and policy publications, this review critically examines the relationships between environmental economics and the SDGs, focusing on four approaches: the System of Environmental-Economic Accounting (SEEA), green consumerism, fiscal policy and degrowth. Particular attention is given to their potential contributions, implementation barriers and unintended socioeconomic consequences, especially within developing countries. The analysis indicates that these approaches offer different pathways towards sustainability, although their effectiveness depends on institutional capacity, policy coordination, market conditions and the consideration of social equity. Furthermore, the review highlights the importance of examining potential trade-offs between environmental objectives and economic development rather than assuming that environmental economic interventions necessarily generate beneficial outcomes. The study identifies a need for more integrated and interdisciplinary research that incorporates human behaviour, governance and socioeconomic conditions into environmental economic analysis.