Why sustainable development concept seldom practiced by the micro units (Post on Nov 15, Repost to add the extended body to the Entry Body)

Just like in neoclassical economics, it will be more practical if you separate the micro ecological economy and macro economy in the field ecological economy.The micro and macro economy doesn’t converge in their view of economy scale.”spaceship economy” for the macro and “cowboy economy” for the micro. The government should act upon this judgement, pulling in stead of pushing the business unit to apply the strong sustainability view.

Back in 1966, Kenneth Boulding pointed out the two words “cowboy economy” and “spaceship economy”. Nowadays, more and more people begin to accept his “spaceman economy” concept, however, why still most of the companies, in micro side, apply a policy contra to this view.

The economy on a whole has its boundary of expansion in terms of throughput, however, the enterprise doesn’t think that they will be near the boundary. They are in the cowboy stage in their sub system..The sustainable development of the enterprise doesn’t converge with the macro.

First, until now they can get the nature resources like water and air free of charge. Because the marginal cost of it is almost zero, they will not take it into consideration.

Second, as long as the “money” exists, the human society will distribute the resource based on the fortune you have, so when the resources are hard to get, the one with the most money will get it. To make the business sustainable, they must try to get the most profit. They can use their money to buy the technology or resources needed if necessary. it’s those who have the most money get the resources. In this case, they will not meet their own boundary, they can offset it either by getting the others’ share or by improving of technology. These extend the space for the enterprise to act as if they are in a “cowboy economy.”

The micro economic view the environment as “cowboy eonomy” and will act based on its view. We should not expect that the government set a law to limit the gas emission of the car 80 years ago, and it’s the same that the business now will NOT invest heavily on the natural capital at the risk of losing his market and profits.

We can conclude that most of the business will act upon the concept of weak sustainability view. They just react to the laws, customs and culture in order to maximize their profit. And the government should set up the policy based on this judgment. Therefore, they should levy the tax or through other means to raise the cost of using of the natural resources to let the business unit improve the productivity efficiency more rapidly. As the traditional economics, the eco economics should establish the macro basis and micro basis theory to solve the different problems and make itself more perfect.

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Posted in sustainable development

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