The Economics of Sustainability in Business

Catalog description

Mainstream economics often simplifies or ignores the differences between man-made capital and natural capital in the economy and the wider environment. When taking a ‘strong sustainability’ view, the distinction between them is critical. Students will become familiar with important economic concepts, including externality, scarcity, opportunity cost and factors of production, ecosystem services, and the tragedy of the commons, which impact the sustainability of individuals, businesses and society itself. The class will also look at the ‘business case for sustainability’, and examine how businesses can earn profits without sacrificing the environment or human well-being, and learn how governmental regulation and incentives can help or hinder those efforts.