At the end of my undergraduate studies in economics I was ready to go into graduate studies in finance, monetary policy or macroeconomics. At that time in my country, the choices were not much broader than that. In order to complete my studies I needed 30 days of community work, so I went to Ostional National Wildlife Refuge (ONWR), one of a few places in the world where sea turtles come to nest in massive numbers. My task was to craft a set of rules and incentives for the local community to organize better around the unique resources of this protected area.

Early this year, Thomas Friedman (2014) reported on a (Wikileaks) cable sent in 2008 from the US Embassy in Damascus concerning the drought Syria had been suffering from since 2006 (and which was going to last for another couple of years). The Syrian UN food and agriculture representative was seeking assistance for among others 15,000 small-holding farmers, who might otherwise seek jobs in Syrian cities (leaving many women and children behind in poverty) and who could arguably add to already existing social and economic tensions in those cities.

The journal Environment and Development Economics has made a major contribution over the last 20 years to our understanding of the ways in which the environment interacts with the process of development. The risks of ignoring environmental considerations was raised at the outset when the journal was launched and the discussion has gone on to become more informed and sophisticated as time has passed. We know more about where development may bring about an improvement in environmental quality and where it may not, unless the right policies are followed. We also better appreciate what those policies are and what challenges governments face in implementing them.

How can the malign and growing influence of lobbying on global climate policies be checked? In this short piece I link some wide-ranging suggestions for academic research by environment and development economists that is needed to further this aim, with the key idea in Acemoglu and Robinson's (2012) Why Nations Fail. Their book argues strongly that sustained, very long-term economic growth through national industrial revolutions requires ‘inclusive institutions’ that distribute political power broadly over a nation's economic, class and geographical sectors. This is because long-term growth needs technical innovations, which cause creative destruction (structural adjustment) of existing technologies, which in turn harms the interests of existing elites. If elites are too powerful, they will block new technologies, so as to keep their powers to extract rents from the rest of society, and the nation will then fail (to grow sustainably).

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.