With the incidence of climate change throughout the world along with the change in biodiversity and depletion of natural resources, researches are going on for the development of environmental friendly economy leading to the formation of a new subject Bioeconomy. In nature it has been noted that different organisms are fighting each other to use natural resources for sustaining life for their survival where the theory of Survival of Fittest persists. Economists have always tried to think about the production, distribution, consumption, profit and loss of the fund of the company without giving any importance to the Natural Capital. The chapter discusses the concept of Bioeconomy with emphasis on the relationships of the environment and economy. From the period of Industrial Revolution to recent date there has been a great discussion going on throughout the world regarding the increase of energy consumption and its environmental consequences. Analysing the facts on Bioeconomy the study finds that only alternative is the use of Green Energy or Renewable Energy for the increase of economic growth as well as the welfare of human society by reducing the environmental deterioration. The use of this energy will also have an impact on job creation too. Thus, the substitution of green energy from conventional energy has a great economic impact.