Sustainable Management
Helo123
3.pptxWeek 2 – in Review
Review each of the four theories that describe the fundamental causes of unsustainability
Do you agree with any one theory; or, do you have your own theory regarding the fundamental causes of unsustainability?
What solutions, presented in “Debating Population“, may help us save ourselves… from ourselves!?
Schedule & Learning Objectives
Capitalism: a Brief Introduction
Sustainable Environmental Economics
APA workshop & work period
Capitalism: a Brief Introduction
Maybe the cause of unsustainability is free-market environmentalism… but wait, let’s back up for a moment…
Capitalism is the dominant economic system in the world today
In capitalism, the means of production (facilities, tools, machinery, natural resources, etc.) are privately owned and operated for a profit (profit-motive)
Many theorists contributed to the economic system, notable among them:
Adam Smith (1723 - 1790) – invisible hand/division of labour
Karl Marx (1818 - 1883) – creates a class system/uniformity, conformity & cheapness
Central to capitalism is the concept of perpetual growth
Sustainable Environmental Economics
While it is generally agreed that sustainable development would be difficult if not impossible to achieve under capitalism as it exists today, with a few small modifications, it may be possible for the two to coexist!
Let Consumers make informed decisions
Value nature’s “free” services
Reconsider socially-efficient solutions
Adopt a more comprehensive measure of development
Sustainable Environmental Economics 1. Let Consumers make Informed Decisions
The “free-market” of capitalism sets market costs for goods and services based on what the consumer is willing-to-pay; however, the market cost may not represent the true cost
Must consider externalities (hidden costs) associated with any given good or services
Solution: prices must reflect the true cost!
A $200 hamburger? Raj Patel describes why the true cost of a burger is closer to $200 than $5!
Sustainable Environmental Economics 2. Value Nature’s “Free” Services
Natural capital is generally treated as a “free” input
Or, if value is assigned, it often dramatically underestimated
Solution: assign value to incommensurables
Sustainable Environmental Economics 3. Re-Consider Socially-Efficient Solutions
Entrenched within our regulatory apparatus, environmental decisions are routinely made in consideration of the most socially-efficient solutions
Decision making relies on benefit-cost analysis
Let’s consider an example: what are you willing-to-pay for clean air?
Solution: sustainable benefit-cost analysis
Sustainable Environmental Economics 4. Adopt a more comprehensive measure of development
Gross domestic product (GDP) has been adopted as the primary measure of development
A brief history of GDP
If GDP is up, why is America down?
Natural disasters are positive, unpaid work is a waste of time, depletion of natural capital is encourage and pollution is king! (yes…. you are reading this correctly!)
Solution: redefine development goals; there are a few options, including: Sustainable Development Goals and Genuine Progress Indicator
Course Project Introduction & APA
To ensure that we are all on the same page with APA – let’s take some time to review and revise our work!
Open your CP introduction – let’s do a citation check
Reference list check
Summary & Next Steps
Capitalism preaches growth, without valuing the very capital that makes such growth possible
It’s time to review the current economic system to ensure it supports corporations’ triple bottom line prosperity
Next class: Sustainability’s Stakeholders
Review instructions for Assignment #2
Complete assigned reading
Complete and re-submit Assignment #1
