How economic behavior can hamper sustainable development
| Published date | 04 October 2013 |
| Date | 04 October 2013 |
| Pages | 252-259 |
| DOI | https://doi.org/10.1108/WJSTSD-02-2013-0016 |
| Author | Jan Emblemsvåg |
| Subject Matter | Public policy & environmental management,Environmental technology & innovation |
How economic behavior can
hamper sustainable development
Jan Emblemsva
˚g
Vard Group AS, Alesund, Norway
Abstract
Purpose – The purpose of this paper is to highlight a fundamental issue that is preventing mankind
to act rationally towardmore environmentally benign technology. Moreover, the paper aims to provide
a basis for further research into what might be labeled as behavioralenvironmental managementwhose
purpose is to focus onwhat can be achieved by changing systems to induce theright behavior in people.
Design/methodology/approach – Using literature review and building up the case logically is the
main avenue of research. There are still no case studies available.
Findings – The main findings are that there are indeed significant behavioral problems induced by
herding and short-termism currently embedded in the economic system. Unfortunately, there are no
easy ways to solve this problem. Ways need to be found for impacting the behavior of people.
Research limitations/implications – While the review on herding and short-termism is based on
significant publications, there is always the risk of passing the wrong judgments concerning such
complex issues that are so ingrained in the economic system. This said, given that the pur pose of this
paper is not so much to provide answers as it is to provide questions, and in that context it is safe to
assume that any research limitation will have little impact so far.
Originality/value – The originality of the paper, and hence its value, is that it focusses on something
that is very prevalent in today’s economic system which unfortunately is largely forgotten when the
paper discusses environmental management. It is as if environmental issues are intentionally
separated from economic issues, which this paper ultimately proves to be an erroneous proposition.
Environmental and economic issues are probably much more interlinked than most believe.
Keywords Behaviourism, Herding, Shipbuilding, Short-termism
Paper type Research paper
1. Introduction
Life is short, the art long, opportunity fle eting, experiment treacherous, judgment difficult
(Hippocrates).
Many believe that the Industrial Revolution was a technical revolution alone, but this is a
common simplification that is important to shed light upon if our societies are to become
sustainable. According to The Economist (1999), limited liability was a key to industrial
capitalism as important for the Industrial Revolution as the contributions of Watt,
Stephenson, and others pioneers. The first law of limited liability was passed in the State
of New Yorkin 1811, and in 1854 Great Britain followed suit. This meant that shareholders
were no longer personally liable for what the company did; they only risked losing their
capital as opposed to losing everything they owned and possibly being imprisoned, as
before. This new system unlocked vast sums of money, and it ultimately financed the
Industrial Revolution. Thus, while the technical marvels of the Industrial Revolution
provided the basis for revolution, it was finance that fueled it into a true revolution.
The lesson for our discussion here is cle ar: if we are to achieve sustainable
development, we must make sure that the economic system pulls in the desirable
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2042-5945.htm
WorldJour nal of Science, Technology
and Sustainable Development
Vol. 10 No. 4, 2013
pp. 252-259
rEmeraldGroup PublishingLimited
2042-5945
DOI 10.1108/W JSTSD-02-2013-0016
The views presented in this pap er are those solely of the author and do not necessarily reflect
those of STX OSV AS or any of its companies.
252
WJSTSD
10,4
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