An example method for facilitating on-demand bandwidth provisioning in a network environment is provided and includes receiving a request from a client at a first network for accommodating flow characteristics at a second network that is associated with executing an application at the first network, determining that the request cannot be fulfilled with available network resources allocated to the client by the second network, advising the client of additional cost for accommodating the flow characteristics, and authorizing additional network resources in the second network to accommodate the flow characteristics after receiving notification from the client of payment of the additional cost.