Envy is diabolical. It is also human, however sinful. I am learning to identify it in myself, and then to address it when I see it. Nobody likes to identify it in themselves. My red flag is when I feel like putting other people down. Sure, other people can be jerks, idiots, mercenary, lazy, and character-flawed in a multitude of ways, but so am I. It's fair that I try to use discernment when assessing others, but that is different.
I used to deny it, or rationalize it. A bit of that came from wanting to boost myself up by mentally putting down others. That is not only sinful, but a complete and futile waste of mental energy. I recommend prayer, with humor, as an approach to malignant envy. My preaching to myself this Lenten season is to confirm that Christ is my rock, not my damn self.
The proper response to observing goodness or excellence in another is joy and zeal.