Category: Sustainable Economics

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Austerity and Degrowth

I have to start with Greece. For many vocal advocates of a more leftwing economic policy, most notably (and notoriously) Paul Krugman), the prolonged debt crisis in the Mediterranean country has its roots in austerity politics imposed by the ‘Troika’ of the ECB, IMF, and the Eurozone Group. Without another haircut, i.e. write-off of Greek debts, and a stimulus program, Greece will not manage to recover. And recovery, of course, means GDP growth. I could argue about the deeper meaning of austerity politics in the case of Greece (or Portugal, or Spain, or Ireland for that matter) – to actually build a coherent fiscal framework for the Eurozone with shared understandings of political economy, something that has not been there in the first place and what is desperately needed in a common currency area.… Read more

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IPAT and the End of Growth

In the early 1970s Ehrlich and Holdren devised a simple equation in dialogue with Commoner identifying three factors that created environmental impact. Thus, impact (I) was expressed as the product of (1) population, (P); (2) affluence (A); and (3) technology, (T):

I = P * A * T

Population is the number of people on the planet, affluence is measured in GDP per capita, and technology is environmental impact per GDP. When looking at the growth rates of each I, P, A, and T the formula changes towards this form:

dI = dP + dA + dT

In order to see how the impact changes from one year to the next one, you just have to sum up the changes in population increase, affluence, and technological progress.… Read more

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Economic Sustainability Revisited

When business people and management scholars speak of sustainability, they most often refer to the idea of a triple bottom line for planet, people and profit – sustainability as the integration of ecological, social and economic goals or dimensions. The focus of research, just as the activities of “sustainability managers”, is on calculating and evaluating ecological and social sustainability. Carbon footprinting, lifecycle analysis, employee motivation and human capital as an asset – these topics are often driving sustainability debates in companies.… Read more

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Why monetize sustainability?

When talking about corporate responsibility, the issue of measurement comes up after a while. And rightly so, because if you cannot measure it you can hardly formulate goals, develop programs for implementation and evaluate your success in achieving them. But what is measured? The answer is simple: money. Regardless if you are trying to measure your company’s ecological or societal impact, most of the times you end up with calculating in Euro, Dollar, Pound and other currencies.… Read more

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Lessons from Gothenburg

After returning from the 6th Lifecycle Management Conference in Gothenburg, where I delivered one of the keynotes dedicated to “Sustainability Beyond Growth”, I noticed that some of the talks and topics really stuck with me. Especially two presentations remain notable. One was from Danone and their new tools for calculating their Carbon Footprint in the supply chain. With their yoghurts they can now see perfectly clear that the “original producers” aka “the cows” are responsible for most of it.… Read more