diff --git a/environment.yml b/environment.yml
index 855fd474..d4fc3258 100644
--- a/environment.yml
+++ b/environment.yml
@@ -10,7 +10,7 @@ dependencies:
     - quantecon-book-theme==0.15.1
     - sphinx-tojupyter==0.3.1
     - sphinxext-rediraffe==0.3.0
-    - sphinx-exercise==1.0.1
+    - sphinx-exercise==1.2.1
     - sphinx-proof==0.3.0
     - sphinxcontrib-youtube==1.4.1
     - sphinx-togglebutton==0.3.2