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Sustainability and externalities: Is the internalization of externalities a sufficient condition for sustainability?

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  • Bithas, Kostas

Abstract

In an important contribution in Ecological Economics, van de Bergh (2010) correctly concludes that sustainability does not imply zero externalities. However, he continues with the Delphic statement "(Delphic statements were uttered by the renowned oracle of ancient Greece at Delphi. They were phrased in such a way as to be self-fulfilling because alternative interpretations covered every possibility.)" "Without externalities the problem of sustainability vanishes". If this statement refers to an impossible economic process that produces no externalities then he is right. However, it might be interpreted as stating that whenever environmental policy internalizes environmental externalities then sustainability will be ensured. In this note, I assert that in the real world where externalities prevail, their internalization or neutralization in the traditional way cannot lead to sustainability. Only if internalization takes a very specific form that results in the inviolable preservation of environmental rights of future generations in pure biological terms can sustainability be ensured. After revised the original commentary I resubmit it. The issues raised by the editor have been carefully considered.

Suggested Citation

  • Bithas, Kostas, 2011. "Sustainability and externalities: Is the internalization of externalities a sufficient condition for sustainability?," Ecological Economics, Elsevier, vol. 70(10), pages 1703-1706, August.
  • Handle: RePEc:eee:ecolec:v:70:y:2011:i:10:p:1703-1706
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    Cited by:

    1. Halkos, George & Paizanos, Epameinondas, 2015. "Environmental Macroeconomics: A critical literature review and future empirical research directions," MPRA Paper 67432, University Library of Munich, Germany.
    2. Friedrich, Daniel, 2021. "Mixing fossil- and bio-polymers for internalisation of environmental damage: An evidence-based model-theoretical economic analysis," Ecological Economics, Elsevier, vol. 186(C).
    3. Panos KALIMERIS, 2018. "Ecce Homo-Economicus? The Dr. Jekyll and Mr. Hide syndrome of the economic man in the context of natural resources scarcity and environmental externalities," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 12(1), pages 89-111, November.
    4. Ami, Dominique & Aprahamian, Frédéric & Chanel, Olivier & Joulé, Robert-Vincent & Luchini, Stéphane, 2014. "Willingness to pay of committed citizens: A field experiment," Ecological Economics, Elsevier, vol. 105(C), pages 31-39.
    5. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    6. Steve Evans & Doroteya Vladimirova & Maria Holgado & Kirsten Van Fossen & Miying Yang & Elisabete A. Silva & Claire Y. Barlow, 2017. "Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models," Business Strategy and the Environment, Wiley Blackwell, vol. 26(5), pages 597-608, July.
    7. Dmytro Kozlov, 2021. "The Strategies of Internalizing the Negative Externalities in the Company's Sustainable Development," Virtual Economics, The London Academy of Science and Business, vol. 4(3), pages 7-19, July.
    8. Roman Trötschel & Marie van Treek & Caroline Heydenbluth & Kai Zhang & Johann M. Majer, 2022. "From Claiming to Creating Value: The Psychology of Negotiations on Common Resource Dilemmas," Sustainability, MDPI, vol. 14(9), pages 1-26, April.
    9. Stefan Gössling & Andreas Humpe & Todd Litman & Daniel Metzler, 2019. "Effects of Perceived Traffic Risks, Noise, and Exhaust Smells on Bicyclist Behaviour: An Economic Evaluation," Sustainability, MDPI, vol. 11(2), pages 1-15, January.
    10. Kevin Riehl & Florian Kiesel & Dirk Schiereck, 2022. "Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation," Sustainability, MDPI, vol. 14(6), pages 1-23, March.
    11. Silvana Dalmutt Kruger & Antonio Zanin & Orlando Durán & Paulo Afonso, 2022. "Performance Measurement Model for Sustainability Assessment of the Swine Supply Chain," Sustainability, MDPI, vol. 14(16), pages 1-19, August.
    12. Riehl, Kevin & Kiesel, Florian & Schiereck, Dirk, 2022. "Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 132099, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    13. Gössling, Stefan & Choi, Andy S., 2015. "Transport transitions in Copenhagen: Comparing the cost of cars and bicycles," Ecological Economics, Elsevier, vol. 113(C), pages 106-113.
    14. Patrizia Ghisellini & Renato Passaro & Sergio Ulgiati, 2021. "Revisiting Keynes in the Light of the Transition to Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 143-171, June.
    15. Momeni, Marzieh & Zakeri, Zahra & Esfandiari, Mojtaba & Behzadian, Kourosh & Zahedi, Sina & Razavi, Vahid, 2019. "Comparative analysis of agricultural water pricing between Azarbaijan Provinces in Iran and the state of California in the US: A hydro-economic approach," Agricultural Water Management, Elsevier, vol. 223(C), pages 1-1.
    16. Levrel, Harold & Jacob, Céline & Bailly, Denis & Charles, Mahe & Guyader, Olivier & Aoubid, Schéhérazade & Bas, Adeline & Cujus, Alexia & Frésard, Marjolaine & Girard, Sophie & Hay, Julien & Laurans, , 2014. "The maintenance costs of marine natural capital: A case study from the initial assessment of the Marine Strategy Framework Directive in France," Marine Policy, Elsevier, vol. 49(C), pages 37-47.
    17. Kostas Bithas & Panos Kalimeris & Eleni Koilakou, 2021. "Re‐estimating the energy intensity of growth with implications for sustainable development. The myth of the decoupling effect," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 441-452, March.
    18. Shashi, & Centobelli, Piera & Cerchione, Roberto & Singh, Rajwinder, 2019. "The impact of leanness and innovativeness on environmental and financial performance: Insights from Indian SMEs," International Journal of Production Economics, Elsevier, vol. 212(C), pages 111-124.
    19. Drupp, Moritz A. & Baumgärtner, Stefan & Meyer, Moritz & Quaas, Martin F. & von Wehrden, Henrik, 2020. "Between Ostrom and Nordhaus: The research landscape of sustainability economics," Ecological Economics, Elsevier, vol. 172(C).
    20. Lázaro-Touza, Lara & Atkinson, Giles, 2013. "Nature, roads or hospitals? An empirical evaluation of ‘sustainable development preferences’," Ecological Economics, Elsevier, vol. 95(C), pages 63-72.
    21. Guy M. Robinson & Bingjie Song, 2018. "Transforming the Peri-Urban Fringe in China: The Example of Xi’an-Xianyang," Sustainability, MDPI, vol. 10(11), pages 1-17, October.
    22. Shahnaj Akter & Shahjahan Ali & Mária Fekete-Farkas & Csaba Fogarassy & Zoltán Lakner, 2023. "Why Organic Food? Factors Influence the Organic Food Purchase Intension in an Emerging Country (Study from Northern Part of Bangladesh)," Resources, MDPI, vol. 12(1), pages 1-19, January.
    23. Remig, Moritz C., 2015. "Unraveling the veil of fuzziness: A thick description of sustainability economics," Ecological Economics, Elsevier, vol. 109(C), pages 194-202.
    24. Rafael Laurenti & Jagdeep Singh & Rajib Sinha & Josepha Potting & Björn Frostell, 2016. "Unintended Environmental Consequences of Improvement Actions: A Qualitative Analysis of Systems' Structure and Behavior," Systems Research and Behavioral Science, Wiley Blackwell, vol. 33(3), pages 381-399, May.
    25. Liu, Qian & Zheng, Lucy, 2016. "Assessing the economic performance of an environmental sustainable supply chain in reducing environmental externalitiesAuthor-Name: Ding, Huiping," European Journal of Operational Research, Elsevier, vol. 255(2), pages 463-480.

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