Sustainability and Business

2 credits · Graduate

We focus on the importance of economics and business for environmental conservation and policies to work: (a) Policies will not pass legislation unless it is cost-effective and relatively inexpensive, (b) lobby opposition from business can be intense but will vary systematically depending on how the policies are designed, (c) environmental problems represent inefficiencies that can generate both social surplus and profit/business opportunities when the problems are addressed, and companies are experts in solving such inefficiencies, (d) environmental problems require new technology and profit-maximizing innovators often have the strongest incentives and abilities to develop new technologies. For all these reasons, proponents for environmental sustainability can and must embrace what economics and business can offer. The class draws on teaching material at the GSB.