The political economy of the environment refers to the study of the complex interactions between economic systems, political institutions, and environmental policies. It involves examining how economic decisions and actions impact the natural environment and how political institutions and policies influence economic behavior related to the environment.

At its core, the political economy of the environment is concerned with understanding how the distribution of power and resources among different actors, such as individuals, businesses, and governments, affects environmental outcomes. It takes into account the underlying economic incentives and institutional structures that shape environmental policy decisions and their implementation, as well as the broader social and ecological implications of those decisions.