Title:
SUSTAINABILITY THOUGHTS 128: HOW CAN THE THINKING BEHIND SUSTAINABILITY BASED MARKET EXPANSIONS AND TRADITIONAL MARKET BASED ECONOMIC EXPANSIONS BE CONTRASTED USING PARETO OPTIMALITY THINKING? HOW ARE THESEEXPANSIONS LINKED TO SUSTAINABILITY GAP DYNAMICS?

Authors:
Lucio Munoz* ,Canada

Abstract:
It can be said that pareto optimality thinking works in parallel fashion across markets as it is associated one to one with the structure of the price of each market, which in turn is linked to specific production and consumption bundles in those markets. For example, pareto optimality in sustainability markets is associated with the structure of the sustainability market price, which is linked to sustainability based production and consumption bundles. In traditional markets, pareto optimality is associated with the structure of the traditional market price, which is linked to traditional production and consumption bundles. It can also be said that pareto optimality points can be linked by a pareto optimality sustainability line, which indicates two things i) the existence of higher and lower level pareto optimality points; and ii) the direction of optimality when we go from higher level markets to lower level markets or vice versa. For example, linking sustainability based pareto optimality with traditionally based pareto optimality through this pareto optimality sustainability line helps see that when the traditional markets were created we created socio-environmental sustainability gaps in the process that separates them from sustainability markets, and when traditional markets expand, they also expand this embedded socio-environmental sustainability gap as they move away from sustainability markets. The 2012 shift from traditional market thinking to green market thinking suggest a shift from traditional pareto optimality thinking to green pareto optimality thinking as green markets are higher level responsibility markets. If we would have shifted to sustainability market thinking instead then, that would have required a shift from traditional pareto optimality to sustainability based pareto optimality. The knowledge to go beyond traditional pareto optimality thinking and to understand the nature and implications of green market expansions or of sustainability market expansions or of any other possible type of market expansions is not yet here so we cannot link it to what we know about traditional market expansions. Hence, there is a need to close this type of paradigm shift knowledge gap. And a good way to start is by asking relevant questions such as how can the thinking behind sustainability based market expansions and traditional market based economic expansions be contrasted using pareto optimality thinking? How are these expansions linked to sustainability gap dynamics? What would be the resulting optimality point if we correct the traditional market optimality point to account for social externalities only or to account for environmental externalities only or to account for both types of externalities at the same time? Among the goals of this paper is to provide an answer to the questions posed above