IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i5p1486-d145324.html
   My bibliography  Save this article

Rethinking Teaching of Basic Principles of Economics from a Sustainability Perspective

Author

Listed:
  • Namrata Chindarkar

    () (Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore 259772, Singapore)

  • Dodo J. Thampapillai

    () (Lee Kuan Yew School of Public Policy, National University of Singapore, Singapore 259772, Singapore)

Abstract

In this paper, we posit that sustainability warrants explicit recognition in the teaching of basic principles of economics. The conventional exposition of conceptual and analytic frameworks in basic principles in almost all standard economics textbooks overlooks at least two basic flaws. The first of these concerns the collection of residual externalities that exist without being internalized in market transactions and hence fall outside the calculus of national income accounting. For example, not all energy resource prices capture the entirety of the damages inflicted on natural ecosystems. The cumulus of residual externalities threatens the feasibility of sustainability. The second flaw is the absence of sustainability as a necessary condition in the fundamental benchmark of perfect competition (PC). Sustainability, when explicitly introduced in the PC benchmark, results in significant changes to conceptual premises in economics. The most significant of such changes concerns the axiomatic differentiation between “goods” and “bads”.

Suggested Citation

  • Namrata Chindarkar & Dodo J. Thampapillai, 2018. "Rethinking Teaching of Basic Principles of Economics from a Sustainability Perspective," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-8, May.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1486-:d:145324
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/5/1486/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/5/1486/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. anonymous, 1995. "Does the bouncing ball lead to economic growth?," Regional Update, Federal Reserve Bank of Atlanta, issue Jul, pages 1-2,4-6.
    2. Knetsch, Jack L, 1989. "The Endowment Effect and Evidence of Nonreversible Indifference Curves," American Economic Review, American Economic Association, vol. 79(5), pages 1277-1284, December.
    3. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    4. Dodo J. Thampapillai, 2010. "Perfect competition and sustainability: a brief note," International Journal of Social Economics, Emerald Group Publishing, vol. 37(5), pages 384-390, April.
    5. Alan Blinder, 2010. "Teaching Macro Principles after the Financial Crisis," The Journal of Economic Education, Taylor & Francis Journals, vol. 41(4), pages 385-390, September.
    6. Pranav Gupta & Grace B Li & Jiangyan Yu, 2015. "From Natural Resource Boom to Sustainable Economic Growth; Lessons for Mongolia," IMF Working Papers 2015/090, International Monetary Fund.
    7. Li, Bin Grace & Gupta, Pranav & Yu, Jiangyan, 2017. "From natural resource boom to sustainable economic growth: Lessons from Mongolia," International Economics, Elsevier, vol. 151(C), pages 7-25.
    8. Daniel Kahneman & Jack L. Knetsch & Richard H. Thaler, 1991. "Anomalies: The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter.
    9. Bharat Diwakar & Gilad Sorek, 2015. "Economic Development and Stage-Dependent IPR," Auburn Economics Working Paper Series auwp2015-16, Department of Economics, Auburn University.
    10. ., 2015. "Theoretical evolution of economic development," Chapters, in: Introduction to Regional Economic Development, chapter 2, pages 25-35, Edward Elgar Publishing.
    11. Thampapillai, Jesuthason (Dodo) & Sinden, Jack A., 2013. "Environmental Economics: Concepts, Methods and Policies," OUP Catalogue, Oxford University Press, edition 2, number 9780195519556.
    12. Daniel Kahneman & Peter P. Wakker & Rakesh Sarin, 1997. "Back to Bentham? Explorations of Experienced Utility," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 375-406.
    13. Cleveland, Cutler J. & Ruth, Matthias, 1997. "When, where, and by how much do biophysical limits constrain the economic process?: A survey of Nicholas Georgescu-Roegen's contribution to ecological economics," Ecological Economics, Elsevier, vol. 22(3), pages 203-223, September.
    14. Ayres, Robert U., 2008. "Sustainability economics: Where do we stand?," Ecological Economics, Elsevier, vol. 67(2), pages 281-310, September.
    15. Partha Dasgupta & Geoffrey Heal, 1974. "The Optimal Depletion of Exhaustible Resources," Review of Economic Studies, Oxford University Press, vol. 41(5), pages 3-28.
    16. Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
    17. Alan S. Blinder, 2010. "Teaching Macro Principles after the Financial Crisis," Working Papers 1222, Princeton University, Department of Economics, Center for Economic Policy Studies..
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. John Chung-En Liu & Yoram Bauman & Yating Chuang, 2019. "Climate Change and Economics 101: Teaching the Greatest Market Failure," Sustainability, MDPI, Open Access Journal, vol. 11(5), pages 1-12, March.
    2. Christy Anderson Brekken & Hikaru Hanawa Peterson & Robert P. King & David Conner, 2018. "Writing a Recipe for Teaching Sustainable Food Systems: Lessons from Three University Courses," Sustainability, MDPI, Open Access Journal, vol. 10(6), pages 1-19, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel McFadden, 2014. "The new science of pleasure: consumer choice behavior and the measurement of well-being," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 2, pages 7-48, Edward Elgar Publishing.
    2. Jose Apesteguia & Miguel Ballester, 2009. "A theory of reference-dependent behavior," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(3), pages 427-455, September.
    3. Yuping Deng & Helian Xu, 2015. "International Direct Investment and Transboundary Pollution: An Empirical Analysis of Complex Networks," Sustainability, MDPI, Open Access Journal, vol. 7(4), pages 1-25, April.
    4. Roma, Antonio & Pirino, Davide, 2009. "The extraction of natural resources: The role of thermodynamic efficiency," Ecological Economics, Elsevier, vol. 68(10), pages 2594-2606, August.
    5. Ulrich Schmidt & Stefan Traub, 2009. "An Experimental Investigation of the Disparity Between WTA and WTP for Lotteries," Theory and Decision, Springer, vol. 66(3), pages 229-262, March.
    6. DIARRA, Setou & LEBIHAN, Laetitia & MAO TAKONGMO, Charles Olivier, 2018. "Polygyny, Child Education, Health and Labour: Theory and Evidence from Mali," MPRA Paper 88518, University Library of Munich, Germany.
    7. Holden, Stein & Bezu, Sosina, 2014. "Tools, Fertilizer or Cash? Exchange Asymmetries in Productive Assets," CLTS Working Papers 13/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 11 Oct 2019.
    8. Holden , Stein & Bezu, Sosina, 2014. "Land Valuation and Perceptions of Land Sales Prohibition in Ethiopia," CLTS Working Papers 12/14, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 10 Oct 2019.
    9. Venkatachalam, L., 2008. "Behavioral economics for environmental policy," Ecological Economics, Elsevier, vol. 67(4), pages 640-645, November.
    10. Tilman Santarius & Johanna Pohl & Steffen Lange, 2020. "Digitalization and the Decoupling Debate: Can ICT Help to Reduce Environmental Impacts While the Economy Keeps Growing?," Sustainability, MDPI, Open Access Journal, vol. 12(18), pages 1-20, September.
    11. Sousa, Yannick Ferreira De & Munro, Alistair, 2012. "Truck, barter and exchange versus the endowment effect: Virtual field experiments in an online game environment," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 482-493.
    12. Elkhan Richard Sadik-Zada & Wilhelm Loewenstein, 2020. "Drivers of CO 2 -Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses," Energies, MDPI, Open Access Journal, vol. 13(15), pages 1-24, August.
    13. Francesco Ferrante, 2009. "Education, Aspirations and Life Satisfaction," Kyklos, Wiley Blackwell, vol. 62(4), pages 542-562, November.
    14. Verchère, Alban, 2011. "Le développement durable en question : analyses économiques autour d’un improbable compromis entre acceptions optimiste et pessimiste du rapport de l’Homme à la Nature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(3), pages 337-403, septembre.
    15. Frances C. Moore, 2017. "Learning, Adaptation, And Weather In A Changing Climate," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 8(04), pages 1-21, November.
    16. Dodo J. Thampapillai, 2016. "Ezra Mishan’S Cost Of Economic Growth: Evidence From The Entropy Of Environmental Capital," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(03), pages 1-10, June.
    17. Banzhaf, H. Spencer, 2016. "Constructing markets: environmental economics and the contingent valuation controversy," MPRA Paper 78814, University Library of Munich, Germany.
    18. Halkos, George & Tzeremes, Nickolaos, 2011. "Kuznets curve and environmental performance: evidence from China," MPRA Paper 34312, University Library of Munich, Germany.
    19. Gu, Wentao & Zheng, Xiaoyan, 2021. "An empirical study on the impact of sustainable entrepreneurship: Based on the environmental Kuznets model," Journal of Business Research, Elsevier, vol. 123(C), pages 613-624.
    20. Eitan Hourie & Miki Malul & Raphael Bar-El, 2018. "The Value of Job Security: Does Having It Matter?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1131-1145, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1486-:d:145324. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.