Sustainability and Economics

By: C. Schulter

When thinking about economics many things may come to mind, and I dare say that the first one is money. Of course, money is a very important aspect of economics, but did you know that economic sustainability is one of the key concepts of this study? The word sustainability, as you may know, is the ability to sustain or maintain a process over time. According to the UN, sustainable development was defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. By merging these concepts with economics, you will reach economic sustainability, which refers to practices designed to create a long-term economic development, while also managing the environmental, social, and cultural aspects of its activity.

But how do companies and nations apply this in the real world? What would be those practices that sustain the market without affecting other sectors of our society?
There are some choices that companies can take to create sustainable markets. The first being resource efficiency: the optimization of resource use minimizes waste generation, not only reducing costs for the company but also reducing environmental damages. Companies can also practice sustainability by embracing circular economy principles: a circular economy aims to produce goods and services with better durability, reparability, and recyclability. A circular economy encourages a change in shopping culture and consumerism, it also generates less waste. Another practice that might seem obvious is long-term planning: companies should always plan ahead and set goals, but when it comes to sustainability this plan needs to be very thorough and realistic. It is a must for companies to be sustainable, and planning on how to do so makes it more attainable. Lastly, governments may have an important role in the achievement of a nation’s economic sustainability, financial incentives and regulations can encourage companies to invest in sustainable practices. Tax breaks, subsidies, less interest rates and many other alternative strategies can be applied to get the best out of companies.
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These are just a few of the many practices that can change our economy. Sustainable practices are now completely integrated in our society. It is our responsibility to make our world a better and safer place for us and the next generations. Don’t restrain yourself by undermining the importance of sustainability, and the many fields in which this significant concept can be applied.