Introduction
Economics of Sustainability is the ability to maintain a distinct level of economic growth indefinitely. Even though economics have conventionally stated economy and the ecological systems as different fields, the economic aspects of sustainability try to view the environment and economy as incredibly interlinked multifaceted systems. It gives more information on how the economic portion of the integrated system is transformed to be sustainable. Economically, sustainability provides an establishment of actions to be done by the present people that will not weaken the predictions of the future people to enjoy levels of wealth, consumption, or utility (Huesemann 547). Sustainability connects with economics through environmental and social effects of economic activity. Therefore, economics sustainability gives a broad explanation of environmental economics where ecological and environmental concerns and variables are the foundations but also a share of a multidimensional perception.
Discussion
Today, the consumption rate of persons in the developing world is sustainable; however, as the rate of population is increasing, people are adapting the high- consumption modern lifestyle. On the other hand, the people in the developed world is growing at a slow rate, and the levels of consumption are viewed as unsustainable. Mainly, the challenge of economic sustainability is to control and achieve the required level of consumption while improving the standards of living in the developing world without creating a negative environmental impact (Bromley 301).
Historically, the relationship between economic development and environmental deprivation has been close. Basically, as the population in the community increases, the environment declines. For a long time, the unstainable economic development has been related to the malevolent development of cancer as it feeds on the Earth's ecosystem which is the life- supportive system. Unless the usage of resources is regulated, the western worldwide civilization will be like the prehistoric civilization that collapsed as a result of overexploitation of the resources (Daly and Joshua 1). While conservative economics deal with economic growth, the economic aspects of sustainability have a clear objective of sustainable balance rather than persistent growth, fair distribution and usage of resources. According to the World Business Council for Sustainable Development, the economy cannot flourish in societies that are unsuccessful.
(Huesemann 547).
In economic sustainability, the word decoupling has been significantly used to show the capability of the economy to develop without sustaining equivalent upsurge in environmental pressure. A decoupled economic can maintain GDP growth with reflecting any negative impact on the ecosystem. The International Resource Panel declared that by 2050 people will be consuming over 140 billion tons of fossil fuels, minerals, biomass, and ores annually, which is three times compared to the present level of consumption unless countries take an initiative to do decoupling (Huesemann 547).
Fundamentally, the report stated that people from the developing nations consume approximately 16 tons of the four leading resources every year and over 40 tons in the developed countries. Economic sustainability studies examine the ways to minimize the resource intensity (such as materials, water, and energy) required for disposal of services and goods, consumption, and production. Additionally, it analyses if this is attained by using new technology, enhanced economic management, or product design (Daly and Joshua 1). There are contradicting claims on whether enhancements in technological efficacy and innovation can achieve the decoupling of economic developments from environmental pollution. On the other side, efficiency specialists have stated that the intensity of resource usage could be reduced, thereby permitting a constant economic growth without resource depletion or pollution.
(Daly and Joshua 1).
An analysis of the technological efficiency advancements has shown the improvements made in the use of energy are overtaken by economic growth (Ali and Savita 1). Largely because of the conservation effect which leads to increased environmental pollution. Moreover, there are practical limits associated with the improvements. For instance, there are limits to manufacturing ships, trains, cars, and other products by making them lighter and thinner without distorting their functions (Huesemann 549). Therefore, long-term economic sustainability needs a steady state economy, which makes the GDP be more or less constant. The economic meaning of nature is reflected in the practice of ecosystem service to show the market significance of the rare natural world which cannot be considered as free and unlimited. Principally, the scarcity of goods and services makes prices increase. Consequently, this promotes technical innovation, frugality, and manufacturing of alternative products. However, such cases happen when the service or product does not succeed within the market system (Ali and Savita 1).
In economic sustainability, the ecosystem services are referred as economic externalities because they are unpriced. For that reason, they are degraded and overworked; a state is known as the Tragedy of the Commons. One strategy for solving this dilemma is the effort to internalizing nature by applying market strategies such as tradeable licenses for carbon, Eco-taxes, and allowing payments of ecosystem services. The use of community currencies such as time banking, gift economy, and local exchange trading systems support the economy and the environment. Several government policies have been predicted to promote the greatest yearly fall in the global carbon dioxide emission.
Associating the environment with externality can produce a short-term profit at the expense of economic sustainability. Sustainable business activities incorporate ecological issues with the economic and social problems. A development that degrades the ecosystem services are called uneconomic development, and it results in low quality of life. Reducing such development can offer excellent prospects for the local businesses. For instance, industrial waste could be viewed as “economic resource in the wrong place.” Waste reduction has benefits such as few environmental punishments, low liability insurance, and savings from disposal costs (Huesemann 549). As a result, it can promote high market shares due to the upgraded public image. Similarly, energy efficiency can lead to higher profits by minimizing the costs.
The idea of economic sustainability has resulted in founding of organizations such as the Sustainable Business Institute, Sustainability Consortium of the Society for Organizational Learning, and the World Council for Sustainable Development. Research aiming at the corporate leaders who have incorporated economic sustainability into commercial approach have led to the invention of the idea” embedded sustainability”; defined as the integration of health, environmental, and social standards in the business. Embedded sustainability provides diverse opportunities for value economic development, such as reduction of waste and better risk management (Huesemann 549).
According to the 2014 research, innovation motivated by resource exhaustion can lead to significant advantages in the production of goods and the company's approach when the fundamental ideologies of change are followed. Limits to growth and the particular “fear of “running out” provoked a reaction from the majority of the economists. The examination of the effect of nonrenewable resources on the current concepts of economic growth has a constant implication on the economics of sustainability. The publication of Our Common Future stated urgent environmental issues such as desertification, deforestation, greenhouse effect, loss of biodiversity, and the impacts of poverty especially in the developing countries (Costanza 1). Thus, it challenged most of the objectives and expectations of the economic growth and improvement. Also, it boosted the concept of “sustainability” and sustainable expansion.
Economics of Sustainability maintains economic growth without creating a negative impact on the environment. It explains more about environmental economics where the ecological and environmental issues are not only the foundation but also part of the multidimensional perception. In the developing nations, the consumption rate is sustainable, but unsustainable in the developed countries (Costanza 1). To solve the challenge of sustainability, efficient technology, approaches, and green economy can be used. There is a close relationship between economic development and environmental deprivation. Unsustainable economic development is associated with the growth of cancer as it eats the ecosystem which supports life. Economic sustainability can be achieved by proper usage and distribution of resources. When the economy is deployed, the GDP growth is maintained without negatively impacting the environment. Decoupling shows the capability of the economy to grow without a sustaining increase in environmental pressure.
Conclusion
Economic sustainability analyses several ways to minimize the resource intensity required in the consumption and productivity. If the Intensity of using resources is reduced, it allows economic growth without environmental pollution. In economic sustainability, the ecosystem services are economic externalities because they are unpriced. As a result, they are overworked and degraded, a state considered as the tragedy of the commons. Relating the environment with externality generates profit at the cost of economic sustainability. Conserving the environment gives an opportunity to the local business. Waste reduction benefits local business. As a result of the economic sustainability, several organizations such as sustainable business institute have been founded. Such organizations help in integrating economic sustainability into the business. Many economists have reacted to the limits of growth and the fear of running out, however, they have triggered the analysis of nonrenewable resources. As a result, the significant environmental issues have been addressed.
Work Cited
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Bromley, Daniel W. "Sustainability." The new Palgrave dictionary of economics (2008): 293-318.
Costanza, Robert An introduction to ecological economics. CRC Press, 2014.
Daly, Herman E., and Joshua Farley. Ecological economics: principles and applications. Island Press, 2011.
Huesemann, Michael H. "Can advances in science and technology prevent global warming?." Mitigation and Adaptation Strategies for Global Change 11.3 (2006): 539-577.
Smith, Michael H., Karlson Hargroves, and Cheryl Desha. Cents and Sustainability: Securing our common future by decoupling economic growth from environmental pressures. Earthscan, 2010.
