Economic theories provide insights and equip professionals to find solutions for the most pressing issues of the day. Today, we will address three interlinked contemporary issues: economic inequality, climate change, and green financing, and explore how graduates with a Bachelor of Arts in Economics tackle them with practical and sustainable solutions.
We also suggest exploring Chanakya University, one of the best private universities in India, for an industry-aligned economics programme and exploring the BA Economics scope at its fullest for a successful career trajectory.
How do economic theories and solutions address contemporary socio-economic challenges?
Chanakya University, Bangalore, is training a new generation of expert economists to manage the contemporary socio-economic challenges.
Tackling Inequality: From Classical to Behavioural Economics
Traditional models, including classical, neoclassical, and Keynesian economics, emphasise market efficiency, labour markets, and fiscal redistribution. However, these models often assume homogeneous agents and fail to capture lived inequality.
Behavioural and institutional economics have advanced our understanding—highlighting how unequal access to credit, health, education, and behavioural biases reinforce inequality. Through modules in macro‑ and micro‑economics, development economics, and econometrics—part of the BA Economics syllabus—students study how inequality arises and persists.
John Rawls’s theory of justice (the difference principle) and Amartya Sen’s capabilities approach suggest policy frameworks that extend beyond pure redistribution. These ideas integrate well with liberal arts approaches championed in BA Hons Political Science, BA International Relations, and Bachelor of Arts in Economics courses, which focus on equity, rights, and global governance.
At purpose-driven new-age private universities in India, such as Chanakya University, the programme combines theory with case studies, data analytics, and simulations, giving students the tools to propose real-world interventions—from progressive taxation to universal basic income and affirmative action.
Addressing Climate Change: Environmental Economics and Public Policy
Climate change presents a classic market-failure challenge: externalities are not priced into fossil-fuel consumption. Environmental economics provides theoretical tools, including Pigouvian taxes, carbon pricing, cap-and-trade systems, and public goods theory.
Bachelor of Art Economics includes specialisations in environmental economics, public economics, and climate change policy, taught by faculty who are specialists in macroeconomics, environmental economics, public policy, and climate change.
Policy solutions derived from theory include carbon taxation, green subsidies (e.g., renewables), regulatory standards, and investment in sustainable public goods, such as forests. Microeconomic modules help students analyse cost-benefit trade-offs, while public finance segments explore the redistribution of climate revenues to vulnerable populations—thus overlapping with inequality policy.
Green Finance: Bridging Markets and Social Goals
Classic finance theory relies on the Efficient Market Hypothesis; however, sustainable finance challenges conventional assumptions by introducing environmental and social metrics as both risk factors and opportunities for investment.
Green finance includes green bonds, climate-aligned investment mandates, ESG criteria, and blended finance models. From a curriculum perspective, economics graduates from a BA Economics programme with exposure to data and analytics can pivot toward roles in financial institutions, development banks, or policy think‑tanks dealing with sustainable finance.
Chanakya University’s emphasis on analytics‑based consulting, research projects, and internships at global institutions prepares students for these roles. Through interdisciplinary collaboration—linking economics with sustainability science and public policy—graduates can design financial tools that channel capital toward low‑carbon infrastructure while ensuring inclusive development.
Integrative Economic Solutions: Merging Approaches in Practice
A robust policy ecosystem emerges by integrating inequality, climate, and finance:
Redistributive Carbon Pricing
Revenues from carbon taxes can be invested in social programmes that aid low‑income populations.
Green Conditional Cash Transfers
Households receive support if they adopt energy-efficient appliances, solar cooking, or sustainable farming practices.
Inclusive Green Bonds
Bonds finance community‑based renewable energy, local adaptation projects or forest conservation, ensuring benefits reach marginalised communities.
Conclusion
An industry-aligned Bachelor of Arts in Economics at the purpose-driven institutions like Chanakya University, or in parallel programmes like BA Hons Political Science or BA International Relations—provides the ideal platform to build solutions that are socially inclusive, environmentally sustainable, and financially viable.
Aspiring students of economics can explore the Chanakya University website to learn more about the BA Economics syllabus, the BA Economics scope, and related disciplines, and apply now for admission 2025.