The first Volvo Environment Prize was awarded to Professor John V. Krutilla and Allen V. Kneese, both of Resources of the Future, USA, who founded resource and environmental economics as a research discipline. The two Laureates lead the field in combining the sciences of economics and ecology, by systematically analysing the various aspects of environmental impact within the current economic system.

The Prize Jury's Citation:
Professor Krutilla and Professor Kneese were pioneers in developing the theory of environmental economics and in demonstrating how the theory can be applied to influence public policy decisions on various concrete issues. Their work laid the foundation for a growing body of research on and knowledge about the complex relationship between the environment and the economy.