Dasgupta was named Knight Bachelor by Her Majesty Queen Elizabeth II in 2002 in her Birthday Honours List for services to economics; was co-recipient (with Karl-Göran Mäler) of the 2002 Volvo Environment Prize; co-recipient (with Geoffrey Heal) of the Association of Environmental and Resource Economists' "Publication of Enduring Quality Award 2003" for their book, Economic Theory and Exhaustible Resources; recipient of the PEN/John Kenneth Galbraith Award, 2007, of the American Agricultural Economics Association; recipient of the Zayed International Environment Prize (II: scientific and technological achievements) in 2011; and recipient of the European Lifetime Achievement Award (in Environmental and Resource Economics) from the European Association of Environmental and Resource Economists, 2014. In 2007, together with Eric Maskin he was awarded the "Erik Kempe Award in Environmental and Resource Economics", a joint prize of the Kempe Foundation and the "European Association of Environmental and Resource Economists (EAERE)". He was awarded the 2015 Blue Planet Prize for Environmental Research, and the 2016 Tyler Prize.