Summary: We introduce \(\lambda\varepsilon\), a simply typed calculus with environments as first class values. As well as the usual constructs of \(\lambda\) and application, we have \(e[[a]]\), which evaluates term \(a\) in an environment \(e\). Our environments are sets of variable-value pairs, but environments can also be computed by function application and evaluation in some other environment. The notion of environments here is a generalization of explicit substitutions and records. We show that the calculus has desirable properties such as subject reduction, confluence, conservativity over the simply typed \(\lambda\beta\)-calculus and strong normalizability.