Professor Luca Tacconi's research focuses on the economic, political, and social factors that drive environmental change – resulting in loss of biodiversity and climate change – and their implications for rural livelihoods and poverty. He is conducting research on environmental governance, social and economic aspects of deforestation and climate change, payments for environmental services, and research methods for environmental management.

He has worked on research and development activities funded by the Australian Research Council, the Australian Center for International Agricultural Research, the Australian Agency for International Development, the Department for International Development (UK), the European Commission, The World Bank, the United Nations Development Programme, the United States Agency for International Development, the Government of Japan, the South Pacific Regional Environmental Program. He has also collaborated with government and non-government organizations such as the Ministry of Forestry of Indonesia, the Ministry of Forestry of Vanuatu, The Nature Conservancy, Transparency International, and the World Wide Fund for Nature.