One of the pillars of greening the economy is the increase of public expenditures in activities thatrnare associated to sustainable development. Even though environmental protection is not the onlyrnconcern for a "green " economy, it can only make sense if there is an improvement of the effortsrnin the public sector associated with environmental protection. It is unquestionable that publicrnftll1ding remains crucial for addressing environmental problems and, more broadly, promoting arngreener model of development in Ethiopia. The main objective of the study was to understand therntrends of public expenditure in en vironment and to obtain critical information for streamlining andrnstrengtheningfllture investments in environmental programs, project and activities. Public environmentrnexpenditures covered in this report are those related to the prevention, control, abatement, orrnelimination of environmental pollution by general government; both federal and staterngovernment. The techniques used for primary data collection are key informant interview andrnfocus group discussion.rnAs many literatures indicate public spending on environmental protection is often a smallrnji-action of total government budget in many developing countries. Accordingly this thesisrnanalyses Ethiupian spending on environmental protect ian including both federal and state levels,rnin the 2002103-20121/3 period. The descriptive part of the analysis showed in aggregate terms,rnpublic environmental expenditures have increased Fom about ETE 1136.47 million in 2002103rnto about ETE 15,230.54 million in 2012113. The times series data analysis results confirmedrnprevious studies that suggested an increasing trend of public environmental expenditures inrnabsolute value, whereas in percentage terms it is highly fluctuated on environmentalrnexpenditures at both the federal level and the state level. The environmental sector in the countryrnhas been very effective in atlracting domestic public financing, especially afier Rio convention inrn1992. Finally, through fixed effect model the elasticity of expenditure with respect to incomern(GDP) is found to be 0.6, and is significant in explaining the downward slope of thernenvironmental Kuznets curve. The findings of the study can playing a major role in providingrninformation to governments, researchers and other stakeholders on the status of environmentrnand natural resources related spend and initiatives undertaken in a counlly.rnKEY WORDS: Green economy, Public environment expenditure, fixed effect model.