Electronic screening is a many-body phenomenon that strongly depends on the electron-electron interaction in an electron gas. Here, relaxing the assumption of "infinite and homogeneous background," we show that the dielectric environment surrounding the electron gas alters the electron-electron interaction leading to substantial re-normalization of static and dynamic response of the electron gas. The re-normalization of static screening function by dielectric environment impacts experimentally measurable mobility as shown for Si-inversion layer for illustration. Results are analytical and can be used for accurate prediction of transport quantity for any two dimensional gas system with inhomogeneous dielectric environment. © 2013 AIP Publishing LLC.