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The economics of sustainability in the context of climate change: An overview

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  • Guest, Ross

Abstract

The emerging field of sustainable business has its roots in both science and economics--in particular the fields of environmental science and the economics of sustainability. This article provides an overview to the latter field with application to environmental damage due to climate change. The aim is to provide an economic context for the papers in this special issue. The article outlines four essential elements in what has become a vast literature in the economics of sustainability in the context of climate change. First is the dilemma in valuing the distant future which concerns the vexed issue of discounting outcomes that are expected to occur over a very long time horizon. The second is the related characteristics of uncertainty and irreversibility that create an option value in taking action. The third element is the peculiarities of natural capital (arising from the natural environment) compared with reproducible capital (things we make that are used to produce goods and services). The post-neoclassical notions of social capital and knowledge capital are also briefly mentioned. The fourth element is how to manage the global "commons", the prime example of which is the climate. This article is written for the general business reader with an understanding of basic economic concepts and therefore avoids mathematics. References to more technical treatments are provided.

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  • Guest, Ross, 2010. "The economics of sustainability in the context of climate change: An overview," Journal of World Business, Elsevier, vol. 45(4), pages 326-335, October.
    • Handle: RePEc:eee:worbus:v:45:y:2010:i:4:p:326-335
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    3. Ivan N. Alov & Marko D. Petrović & Alisa M. Belyaeva, 2024. "Evaluating the Economic Sustainability of Two Selected Urban Centers—A Focus on Amherst and Braintree, MA, USA," Sustainability, MDPI, vol. 16(2), pages 1-14, January.
    4. Achmad Faqih & Mukarto Siswoyo, 2020. "Regressing climate change, agricultural growth and food production on economic sustainability: gathering and analyzing data for ASEAN countries," Post-Print hal-03121067, HAL.
    5. Francesco Busato & Norma Maccari, 2016. "The Environmental Human Development Index," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2016(2), pages 31-44.
    6. Flladina Zilja & Gilbert Kofi Adarkwah & Christopher Albert Sabel, 2022. "Do Environmental Policies Affect MNEs’ Foreign Subsidiary Investments? An Empirical Investigation," Management International Review, Springer, vol. 62(1), pages 53-102, February.
    7. Xiaobin Pan & Bowen Yang, 2023. "Reality and perfection of China’s addressing climate change legislation in post-Paris Agreement era," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 23(3), pages 311-331, September.
    8. Helen Borland & Adam Lindgreen, 2013. "Sustainability, Epistemology, Ecocentric Business, and Marketing Strategy: Ideology, Reality, and Vision," Journal of Business Ethics, Springer, vol. 117(1), pages 173-187, September.
    9. Candace Martinez & J. Bowen, 2013. "The Ethical Challenges of the UN’s Clean Development Mechanism," Journal of Business Ethics, Springer, vol. 117(4), pages 807-821, November.
    10. Abdelzaher, Dina M. & Martynov, Aleksey & Abdel Zaher, Angie M., 2020. "Vulnerability to climate change: Are innovative countries in a better position?," Research in International Business and Finance, Elsevier, vol. 51(C).
    11. Acosta-Michlik, Lilibeth & Lucht, Wolfgang & Bondeau, Alberte & Beringer, Tim, 2011. "Integrated assessment of sustainability trade-offs and pathways for global bioenergy production: Framing a novel hybrid approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2791-2809, August.
    12. Rodriguez, Rocio & Svensson, Göran & Wood, Greg, 2020. "Assessing corporate planning of future sustainability initiatives in private healthcare organizations," Evaluation and Program Planning, Elsevier, vol. 83(C).
    13. Helen Borland & Véronique Ambrosini & Adam Lindgreen & Joëlle Vanhamme, 2016. "Building Theory at the Intersection of Ecological Sustainability and Strategic Management," Journal of Business Ethics, Springer, vol. 135(2), pages 293-307, May.
    14. Heather Stewart & Rod Gapp, 2014. "Achieving Effective Sustainable Management: A Small‐Medium Enterprise Case Study," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(1), pages 52-64, January.

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