Chapter 2: Economics and Sustainability: A Primer

The authors of the well-known volume, Limits to Growth, state that a sustainable society is one that “meets the needs of the present without compromising the ability of future generations to meet their own needs.” (Meadows, Randers, & Meadows, 2004, p. 254) If you think about this definition for a moment, sustainability is a daunting concept. It is an intimidating notion—one that demands us to examine a whole host of variables. From an economic perspective, we need to address the nature of human wants, what influences them, the fact that most wants repeatedly recur to sustain life, and that wants change and expand over time. We need to consider the wealth of society, how that wealth is accumulated and distributed, and why. Clearly, a major concern needs to be on the use and depletion of natural resources, especially those resources that cannot be renewed. Equally important is the reality that resources are allocated and wants satisfied via a market system of purchases and sales that do not include all the costs of production and consumption. This system creates social costs (externalities) not paid for by the direct producers and consumers. These degrade human life and the environment unless mitigated by public action.