Economic Sustainability Challenges Research Articles

Information provision and preferences for more sustainable dairy farming: Choice experimental evidence from Sweden

AbstractDairy farming in Europe faces profound environmental, social, and economic sustainability challenges, which are of significant policy interest. These challenges support the need for a transition toward the uptake of more sustainable dairy farming practices. This paper examines the effects of an advisory instrument “balanced sustainability information” on farmers’ preferences for more grass-based feeding systems using a between-subjects design and a discrete choice experiment among a sample of Swedish dairy farmers. Conceptually, we develop a state-dependent utility framework with Bayesian updating to motivate the impact pathway. Our results demonstrate that on average, balanced sustainability information has negligible effects on farmers’ feed choices, which could be a consequence of opposing responses to the information, among others. Considering farmer heterogeneity based on their identities and prior knowledge, we find support for some evidence of treatment effects. Our findings highlight important and policy-relevant critical reflections about overoptimistic expectations of information provision as an instrument to nudge behavioral change toward more sustainable farming practices.

The circular economy and firm performance: The mediating role of environmental supply chain cooperation

In recent years, the circular economy has gained prominence as a possible approach of tackling environmental and economic sustainability challenges. The purpose of this study is to look into the relationship between the circular economy and company performance, as well as the role of environmental supply chain cooperation in mediating that relationship. On a sample of 350 organizations, this study analyzes data using structural equation modeling with partial least squares (SEM-PLS). According to the findings, the circular economy has a positive impact on firm performance, which is mediated in part by environmental supply chain collaboration. The findings of this study contribute to the current literature on the circular economy and corporate success by providing empirical evidence of the mediating effect of environmental supply chain collaboration. Because they underscore the necessity of developing and maintaining environmentally friendly supply chain partnerships, the findings have practical value for organizations striving to apply circular economy ideas.

Blockchain Technology as a Game Changer for Green Innovation: Green Entrepreneurship as a Roadmap to Green Economic Sustainability in Peru

Blockchain technology has been heralded as a game changer for addressing severe environmental and economic sustainability challenges. In response to rising environmental concerns, blockchain technology (BCT) is transforming green innovation, culminating in green economic practices and well-established business models. Recognizing this, we investigated the role of blockchain technology in green innovation practices and its impact on green economic sustainability, which has an impact on green environmental sustainability. Moreover, 184 small- and medium-sized enterprises (SMEs) were surveyed in Lima, Peru. Data for this cross-sectional study were gathered using stratified random sampling. The positivist approach was implemented using a statistical induction method. Prior studies’ research constructs were measured using validated measurement scales. For quantitative data analysis, using the partial least squares structural equation modeling (PLS-SEM) framework, this study provided two key findings. First, sustainability orientation and sustainability attitude have a positive and significant effect on the adoption of green innovation that employs green energy (solar) technology towards a sustainable green economy. Second, the intention to use blockchain technology mediates the relationship between sustainability orientation and social perception with the adoption of green innovation that employs green energy (solar) technology towards a sustainable green economy. We recommend that small- and medium-sized enterprises embrace green innovation and blockchain technology to protect the environment and boost community cohesiveness.

Framework for sustainability assessment of the value chain of flowering potted plants for the German market

The value chain of flowering potted plants (FPP) is associated with environmental, social and economic sustainability challenges. Indicator-based assessment methods can provide insights into sustainability performance of agricultural value chains. The FPP value chain is not comparable to other agricultural systems and therefore cannot be assessed with existing indicator-based tools. In this study, a framework was developed for sustainability assessment of the FPP value chain, from breeding to distribution. The development of the framework involved defining sustainability themes and subthemes based on the characterization of the value chain and the investigation of social, environmental and economic sustainability challenges. The generic sustainability assessment tools, Sustainability Assessment of Food and Agriculture Systems (SAFA) and Response-Inducing Sustainability Evaluation (RISE), provided the foundation for indicator selection and development. The current study emphasized the need for a system-specific view, especially in unique systems such as the FPP value chain, because generic assessment tools, such as SAFA and RISE, do not cover all sustainability subthemes. Most of the indicators missing from generic assessment tools were environmental indicators. Environmental assessment is closely related to value chain stages and product-specific processes, therefore indicators were allocated according to the value chain stages, breeding, production and distribution. Social sustainability themes are influenced by national and regional socio-economic conditions, such as government provision of healthcare and a social safety net. Therefore, indicators are allocated based on geographical regions and stakeholder groups. The economic subthemes are determined by industry structure and sector-specific conditions. The ornamental sector is characterized by low margins and high uncertainty, related to profitability and vulnerability. Despite the initial evaluation performed in the current study, in the next step, industry actors need to determine the feasibility of the indicators. The implementation of the framework developed in the current study will provide further insights into the value chain, which will guide actors in taking actions for performance improvement and provide guidance for policy-makers in setting sustainability targets.

A Path Transition Towards a Bioeconomy—The Crucial Role of Sustainability

The bioeconomy is a worldwide used strategy to cope with ecological, social, and economic sustainability challenges. However, we analyze current bioeconomy strategies and trends to point out potential sustainability conflicts and transition challenges. Our analysis shows that the bioeconomy is not sustainable per se, as mere input substitution may entail welfare losses. Instead, it requires further debates and actions to avoid exacerbation of ecological and social strains. Sustainability has to be the key concept behind the bioeconomy and predominantly requires (1) sustainability of the resource base and (2) sustainability of processes and products, especially by (3) circular processes of material fluxes, not least to gain consumer acceptance for bio-based products. Otherwise, the bioeconomy would only entail the substitution of fossil resources for bio-based resources potentially lacking the generation of additional societal and ecological benefits and contribution to climate mitigation. As markets alone will not suffice to fulfil this path transition towards a sustainable bioeconomy, we argue that innovative governance is necessary to reduce competitive drawbacks compared to fossil resources (enabling function) and to secure ecological, social, and economic sustainability requirements (limiting function).

Sustainability-oriented service innovation: An emerging research field

Abstract Current environmental, social and economic sustainability challenges are increasingly becoming sources of motivation for both manufacturing and service companies when attempting to innovate their businesses. In recent years, there has been growing interest from academics, policy-makers and practitioners on service innovation as a new business logic for companies to address societal challenges regarding sustainability. Nevertheless, research specifically focusing on service innovation in relation to sustainability is scarce and ultimately scattered across different research fields. Thereby, only limited clues are available for companies willing to address sustainability challenges through service innovation. To encourage further research in this direction, this paper systematically reviewed the available literature by investigating peer-reviewed publications (from 2004 up to and including 2015) across different fields, which jointly focus on services, innovation and sustainability. The literature review confirmed both the growing amount of research on service innovation in relation to sustainability, as well as the lack of an overarching field to clearly identify such a phenomenon. The review also revealed that three main existing research streams (service innovation, product-service system and sustainability-oriented innovation) contribute to the investigation topic, though all have specific focuses when it comes to the sustainability and innovation dimensions considered. Taking stock of the descriptive and thematic analysis of the review and the identified research gaps, the paper concludes by discussing the need for a clear recognition of the emerging field of sustainability-oriented service innovation, and by outlining several future research pathways for its further enhancement.

Economic sustainability challenges facing the poor women of India

Economic sustainability challenges facing the poor women of India

China's engagement in South America and Africa's extractive sectors: new perspectives for resource curse theories

China's engagement in South America and Africa's extractive sectors has increased significantly in the last decade. How comparable are the African and South American cases from a developmental perspective? This article explores resource curse theories, arguing that the ‘curses’ often associated to extraction are historically produced dynamic processes that need to be reevaluated in light of China's direct and indirect impacts on resource-endowed countries. It elaborates a framework to compare the developmental dynamics entailed by China's involvement in the South American and African extractive sectors, distinguishing between external, internal and intrinsic ‘curses’. The article holds that China's growth and investment have strengthened the position of resource-endowed countries in the international economy, revitalizing resource industries and improving terms of trade for commodities. Concurrently, the expansion of extractive activities has brought about increased environmental and economic sustainability challenges. Divergences between the African and South American cases are best observed at the national levels, where China's non-interventionist approach has different developmental implications depending on internal trends within investment host countries.