Economic self interest and climate action at first read sounds all too oxymoronic to me. After nearly a year of the MACAL program learning about the intersections between climate science, communication, leadership and risks, this course focuses on building the business case for climate action. However, from what I know- self interest, specifically economic self interest manifesting as unbridled capitalism is the smoking gun in the room when looking at the current environmental crisis. Over consumption and globalization have created unthinkable amounts of pollution, and resources are being used at an unsustainable rate in the name of profit. So, how does an economic system which has foregone the ‘environmental costs’ of operations remedy them?

“A business case defines the value a project will deliver” (Herman & Siegelaub, 2009). Businesses aim to measure their progress, and aspire to success by analyzing how efficient their operations are. A business case provides a structure to map out the who, what, why, when, where and how of a project, and can further identify possible benefits and opportunities as well as risks and disadvantages along with timelines and most importantly, the price tag. Success is measured by the ability to follow a business plan and achieve the predetermined deliverables (Herman & Siegelaub, 2009). Costs and benefits are key metrics of a business case, and align with the businesses self-interest to achieve a return on investment, increase value, address a strategic goal, conduct research, increase efficiency or maintain compliance (Herman & Siegelaub, 2009). These same principles may be evident on different scales as well, such as national economic self-interest. Julie Nelson depicts how countries may pursue climate action if it aligns with their economic best interests as well, but ultimately there is little hope for purely altruistic collective action. 

Understanding self-interest provides some insight into motivations behind previous actions and cognizance for predicting future actions. Humans are inherently preoccupied with their own well being, and will often act in ways which ultimately benefit themselves. Similarly do businesses, organizations, and governments. So the question becomes “how do we align sustainable behaviors with maximum personal benefit?”. The microeconomics concept of ‘Mechanism Design’ describes this as a way businesses could reach favorable economic or social outcomes despite the individual’s predisposed likelihood of exhibiting self interest. 

“Researchers in the field of “mechanism design,” while still maintaining the assumption of self-interest, search for ways in which as enlightened planner could make people behave in desired ways by creating systems of incentives that align individual self-interest with broader enterprises or social goals.” (Nelson, 2019).

This unfortunately hasn’t been seen as  feasible by social scientists, and the real ‘solution’ is bound to be more complex. Self-interest isn’t the only motivating factor when it comes to climate change action. Being sympathetic to the potential impacts of climate change, making commitments to action as well as accepting that it is the morally right thing to do and feeling responsible are all reasons that someone may pursue action (Nelson, 2019). Nelson also touches on how decision making may be motivated by social meaning- and that people may choose to do something as to appear more favorably to others around them preserving their character (2019). Which may just ultimately be another form of self interest. 

When I first began to think about what would motivate a business to pursue sustainable practices, money was the first thing that crossed my mind. Rebates for upgrades to energy efficient light bulbs, or reducing emissions to avoid paying additional taxes. However, I  also thought about how social pressure can affect actions as well and how a recent “green” pressure has encouraged businesses to operate more environmentally friendly- or at least appear to be.

I now believe we will ultimately hit a point of necessity- where nations will have to take bolder steps to combat climate change. 

References

Herman, B. & Siegelaub, J. M. (2009). Is this really worth the effort? The need for a business case. Paper presented at PMI® Global Congress 2009—North America, Orlando, FL. Newtown Square, PA: Project Management Institute.

Nelson, J.A. (2019). Chapter 6: Climate change and economic self-interest. In Kanbur, R., & Shue, H. (Eds.). Climate justice:  Integrating economics and philosophy.  Oxford University Press.  (pp. 113- 122)