Slide 1

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 2

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 3

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 4

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 5

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 6

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 7

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 8

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 9

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 10

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 11

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 12

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 13

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 14

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 15

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 16

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 17

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 18

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 19

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 20

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 21

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 22

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 23

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 24

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 25

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 26

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 27

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 28

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 29

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 30

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 31

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 32

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 33

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 34

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 35

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 36

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 37

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38


Slide 38

European Business Environment
MEB

Green Economy /Clean economy for
reshaping society
Lecture 2: Political, social, business,
ecological and environmental
considerations
Prof.ssa Carmen Pasca

Website: http://wwwusers.york.ac.uk/~jdh1/ESCP/

Plan for today
1. I remind you of the Group projects
2. We look today at the economics, politics and business implications of
moving from brown to green.
3. We talk about the increasing interconnectedness of the globe.
4. We worry about sustainability.
5. We watch some videos.
6. We share our views about the seriousness or otherwise of the present
situation and what, if anything, needs to be done about it.

2

Recall!
The assessment for this course is “50% class participation and groupwork; 50% individual final exam”.
In Lecture 4, you will do the class participation and group-work part, by
presenting case studies in four or five groups each of some three or four
students, endogenously formed.
Each group will have 30 minutes to present their case study and each
presentation will be followed by a question, answer and discussion
session.
On the slides in Lecture 1 were some suggestions as to how to find case
studies, but you are free to choose your own.
Can I ask you now which are the groups and what are your projects?

3

The old vicious cycle?

Brown
politics

Brown
economics

Brown
business
4

A new virtuous cycle?

Green
politics

Green
economics

Green
business
5

Brown and green economics

A brown economy is one where production pollutes the environment and
depletes un-replaceable natural resources.
It is one which is not sustainable.
Often the basic problem is that the natural resources are underpriced and
that the polluters are not charged for their pollution.
In contrast a green economy is one in which renewable resources are
used in production and pollution is either minimal or paid for by the polluter
and the fines used to clear up the pollution.
Market liberals say that the solution is in free markets not distorted by
government or interest parties intervention.
Institutionalists and others say that the state has to intervene.

6

Brown and green business

A brown business does not care about its impact on the environment and on
sustainability, either because it feels that it does not have to or that its
customers do not care.
In contrast a green business IS worried about the environment and upon
sustainability, perhaps not for ethical reasons but rather for business reasons.
It sees that its customers care about environmental concerns and that it will
lose business if it does not go green.
Alternately it may see ‘going green’ as an excellent business opportunity to get
one step ahead of its rivals.
Or it may genuinely see that investment in, say, green energy technology, is a
sound business investment.

7

Brown and green politics

Brown politics are those fostered by short-term horizons of politicians, not
realising that ‘brown everything’ is not sustainable.
In contrast green politics encourages sustainability and sensible resource
utilisation.
Cynical politicians might ride on the green politics bandwagon as they can
see that it is becoming increasingly popular with the electorate.

8

Green politics: a definition

Green politics is a political ideology that aims to create an ecologically
sustainable society rooted in environmentalism, social liberalism, and
grassroots democracy. It began taking shape in the western world in the 1970s;
since then Green parties have developed and established themselves in many
countries across the globe, and have achieved some electoral success.
Supporters of Green politics, called Greens (with a capital 'G'), share many
ideas with the ecology, conservation, environmentalism, feminism, and peace
movements. In addition to democracy and ecological issues, green politics is
concerned with civil liberties, social justice, nonviolence, sometimes variants of
localism and tends to support social progressivism. The party's platform is
largely considered left in the political spectrum.

9

Economics, business and politics

All three are inextricably interlinked and each feeds upon the others.

It could be argued that all have to go green simultaneously....
...that none of them could go green on its own.
We shall see!

10

The ‘New Math’ for Business
Six global trends:
1. Emerging markets increase their global power
2. Cleantech becomes a competitive advantage
3. Global banking seeks recovery through transformation
4. Governments enhance ties with the private sector
5. Rapid technology innovation creates a smart, mobile world
6. Demographic shifts transform the global workforce

Three key drivers:
1. Demographic shift
2. Reshaped global powers
3. Disruptive innovation. Innovations in technology
(more on these on the next slide)

11

Three key drivers

1. Demographic shifts. Population growth, increased urbanization,
a widening divide between countries with youthful and quickly
aging populations and a rapidly growing middle class are
reshaping not only the business world, but also society as
a whole.
2. Reshaped global power structure. As the world recovers
from the worst recession in decades, the rise of relationships
between the public and private sectors has shifted the balance
of global power faster than most could have imagined just a few
years ago.
3. Disruptive innovation. Innovations in technology continue to
have massive effects on business and society. We’re now seeing
emerging markets become hotbeds of innovation, especially
in efforts to reach the growing middle class and low-income
consumers around the globe.
12

Energy 2020

You may find interesting this document from the European Commission on the
energy challenges facing Europe.

13

Let us recall our 4 ‘world views’

What might be needed and what might happen depends on your world
view, which could be one of the following or some mix of them.
Market liberals
Institutionalists
Bioenvironmentalists
Social greens

14

Market liberals

Essentially believe that the markets will naturally solve all the
problems, and economic incentives are sufficient.
Growth will naturally occur as humans pursue the profit motive.
The search for the most efficient (and hence profitable) means of
production will lead to better forms of production and to the
invention of new technologies.
This will particularly apply in alternative energy sources: as
conventional carbon fuels diminish in supply and hence become
more expensive, producers will turn to other sources, such as
wind, sea and sun.
Market liberals encourage globalisation as it leads to growth as
well as global integration.
Perhaps some markets need to be regulated and consumers and
workers protected, but state intervention should be minimal.

15

Institutionalists

While sharing many of the beliefs of market liberals,
institutionalists see much more scope and necessity for
institutions to intervene actively in markets.
Institutions are needed to regulate markets, protecting workers
and consumers and to help in the process of disseminating new
technologies and in re-distributing resources to the poorer
members of the world population.
They therefore believe in the importance of world institutions,
such as the United Nations (UN), the United Nations
Environmental Program (UNEP) and the World Trade
Organization (WTO).
They point to the success, for example, of the Montreal Protocol
for eliminating CFCs.
They also believe in helping the poor develop themselves, and
not just giving them aid.
16

Bioenvironmentalists

Are concerned about the physical limits of the earth to support
life. They regard the planet as fragile and that there are limits to
what the earth can support and produce.
They regard output as finite, and the market liberals belief that
output can be increased indefinitely as simply false.
They conclude that positive steps should be taken to limit the
growth of the population and hence of output.
They regard consumption, and its expansion, as not being the
appropriate targets for the world, but that account should be
taken of the environment and for other indicators of a good
‘standard of living’.
They want the world to take positive, and urgent, steps to stop the
world destroying itself.

17

Social greens

They are motivated by radical social and economic concerns, and
regard environmental and social problems as inevitably linked.
They are worried about important social problems, relating, for
example, to the treatment of women and the poor and
disadvantaged in society, and regard these as essential issues
when designing global strategies.
They are concerned about the treatment of workers and their
exploitation by employers who are motivated by profits. In some
senses they are old-fashioned Marxists.
They do not like small communities destroyed in the interests of
capitalism.
They overlap with the Institutionalists in their concern for
globalization, and identify that as a cause of many of the world’s
problems, but differ from them in solutions.

18

Summary of key features

Category

Focus on

Market liberals

Economies

Institutionalists

Institutions

Bioenvironmentalists

Ecosystems

Social greens

Justice

(table 2.2 of text)

19

Summary of key features

(table 2.2 of text)

Category

A global environmental crisis?

Market liberals

No. Some inevitable problems, but overall
modern science, technology and money are
improving the global environment

Institutionalists

Not yet. Potential for crisis unless we act now
to enhance state capacity and improve the
effectiveness of regimes and global institutions.

Bioenvironmentalists

Yes. Near or beyond earth’s carrying capacity.
Ecological crisis threatens human survival.

Social greens

Yes. Social injustice at both local and global
levels feeds environmental crisis.

20

Summary of key features

(table 2.2 of text)

Category

Causes of problems

Market liberals

Poverty and weak economic growth. Market
failures and poor government policy ... are
also partly to blame.

Institutionalists

Weak institutions and inadequate global
cooperation to correct environmental failures,
underdevelopment, and perverse effects of
state sovereignty.

Bioenvironmentalists

Human instinct to overfill ecological space, as
seen by overpopulation, excessive economic
growth and overconsumption.

Social greens

Large-scale industrial life (global capitalism),
which feeds exploitation (of women, poor,
etc) and grossly unequal patterns of
consumption.
21

Summary of key features

(table 2.2 of text)

Category

Impact of globalisation

Market liberals

Fostering economic growth, a source of
progress that will improve the environment
in the long run.

Institutionalists

Enhancing opportunities for cooperation.
Guided globalisation enhances human
welfare.

Bioenvironmentalists

Driving unsustainable growth, trade,
investment and debt. Accelerating depletion
of natural resources and filling of sinks.

Social greens

Accelerating exploitation, inequalities, and
ecological injustice while concurrently
eroding local autonomy.

22

Summary of key features

(table 2.2 of text)

Category

The way forward

Market liberals

Promote growth, alleviate poverty and enhance efficiency, best
pursued with globalisation. Correct market and policy failures,
and use marker-based incentives to encourage clean
technologies. Promote voluntary corporate greening.

Institutionalists

Harness globalisation and promote strong global institutions,
norms and regimes that manage the global environment and
distribute technology and funds more effectively to developing
countries. Build state capacity. Employ precautionary principle.

Bioenvironmentalists

Create a new global economy within limits to growth. Limit
population growth and reduce consumption. Internalise the
value of nonhuman life into institutions and policies. Agree to
collective coercion (world government?) to control growth,
greed and reproduction.

Social greens

Reject industrialisation/capitalism and reverse economic
globalisation. Restore local community autonomy and
empower those whose voices have been marginalised.
Promote ecological justice and local and indigenous knowledge
systems.
23

The consequences of globalisation

We start with a nice video clip talking about the economic, political and
social consequences of globalisation.
There is more on the interconnectedness of the world.

But this clip highlights the disadvantages in ecological terms.
And here we see some of the disasters already threatening the world.

And here is the
great Pacific
garbage patch
– between 700
thousand and
1.5 million
square
kilometers in
size.

24

What is globalisation?

“... Globalisation is the integration of everything with everything else ...”
(Thomas Friedman)
... the widening, deepening and speeding up of worldwide
interconnectedness in all aspects of contemporary social life, from the
cultural to the criminal, the financial to the spiritual...” (David Held)

Left: the
world from
space.

25

What is driving it? What is it causing?

Sometimes difficult to sort out cause and effect.
New and faster communication facilities – telephones, faxes and e-mails.
These spread information faster – particularly about new technologies.
Newer and faster transportation facilities.
Hence more international trade.

26

Global consciousness. When did it begin?

Difficult to be precise.
Possibly we can suggest the 1960’s (as recently as that).
From that date, cross-border financial flows, foreign direct investment
and international trade have grown phenomenally, partly because many
governments have removed barriers to trade of various kinds.
Rapid increase in the number of transnational companies and the growth
of free trade areas (like the EU).

Internationalisation of fashion trends and convergence of world
preferences (to those of the west)
Was this inevitable?

27

Uniformity and Diversity
In the previous slide, we argued that there is more uniformity – in both
preferences and consumption – and in methods of production.

Western agricultural techniques are being used by/imposed upon less
developed countries.
But there are big diversities: there is a problem of obesity in the west,
particularly in the US, while there are problems of starvation, particularly
in Africa.
We should distinguish between economic and social globalisation.
Without doubt the world in aggregate economically better off with
globalisation, but there are lots of inequalities and it is not clear that
social globalisation is a good thing.

28

Global Positive
There are clearly lots of positive effects of globalisation on the global
environment:
Global GDP per head has grown rapidly. This generates the wealth to pay
for environmental improvements (according to the market liberals).
Food production per head has increased rapidly (with new techniques).
Health resources (vaccines, antibiotics and medical care) have improved
rapidly.
Life expectancy is much higher in general.
More babies are born and survive.
Some pollutants (most notably CFC – see Lecture 1) have been eliminated.

29

Global Negative
But there are also lots of negative aspects of globalisation.
Natural resources such as oil and coal are getting depleted. Water is
becoming polluted. Trees are disappearing. The habitat is changing. Ice
caps are disappearing.
Pollution and waste sinks are getting worse (see the Pacific Ocean
Garbage patch). Western governments are exporting their pollution to the
less developed countries.
The rich are getting richer and the poor are getting poorer.
Traditional social lives are being destroyed and people marginalised.

Even in the rich countries, things are not all that good – there is overconsumption, obesity, cancer and unhappiness.
30

Ecological consequences of globalisation

In summary, there are good points and bad points.
How these balance out depends on your point of view.

Market liberals say that markets will naturally sort out most of these
problems, with a little help from government.
Institutionalists say that governments and global institutions should do
more and be stronger.
Bioenvironmentalists say that urgent action needs to be taken before the
world destroys itself.
Social greens say that the world needs to completely rethink – and put
society before the world.
What do you think?
31

The globalisation of environmentalism

Over the years since the serious start of globalisation there has been a growth
in concern with its effects. Chapter 3 and this part of this lecture looks at the
major landmarks.
Some of this started with pressure groups, such as Greenpeace and the CND,
some with government action.
There have been a number of major international conferences – some
successful, some less so.

32

Major international milestones
•UN conference on the Human Environment in1972 in Stockholm
•The Brundtland Report of 1987
•The Earth Summit 1992 in Rio
•World Summit on Sustainable Development in 2002 in Johannesburg
•Climate conference in 2009 in Copenhagen
•Rio +20 in 2012 in Rio (Video: what Ban Ki-moon wants.)
•There is a complete list in Table 3.2.

33

International cooperation

This succession of conferences, often pushed by social demonstrations and
political action, demonstrate that the world can be united but often is not,
when individual states have self-interests that conflict with world interests.

34

What is possible?

Here are two video-clips, one of which we have seen before. The first is by
Shai Agassi saying what is possible in terms of getting rid of pollution caused
by cars. The second (“green cars have a dirty secret”), is the one we have
seen in Lecture 1, is by Bjorn Lomberg, who warns us of hidden costs.
Note what is necessary in Shai Agassi’s solution – social and political
cooperation. With which of our four categories is his solution agreeable?
You should now look at this report on Wonkblog which suggests that it did not
work out as Agassi’s had hoped. There is more in Yale’s Environment 360.
And also President Obama has run into problems with his green ideas.
This is what CNN Money has to say about sustainability.
35

Conclusion

Once again, the conclusion one draws from all this analysis depends upon
your world view.
Clearly people throughout the world are getting more aware of the
implications and consequences of globalisation.
There are more attempts at global cooperation but what form this should
take depends on your world view.
For issues connected with more efficient energy usage you could click
here.
But let us conclude on a pessimistic note. I wonder what your views are.

36

Lecture 2

Arrivederci

37

Lecture 2

38