In 2012 we moved from traditional market thinking to green market thinking, but we are still trying to address the environmental crisis from outside green market thinking. What about for example, perfect green market competition?....Has anybody thought about it?. I have.
I do not have discussions about the theoretical aspects of the theme. A Body Shop Case Study that I wrote pleases me because it is known that this company grew based on its environmental practices.
Link:
Article The Body Shop: uma empresa ou uma ONG?
Good day Roberto, perfect green market competition suggest that environmentally responsible firms can be profitable as long as the green market price is higher than the average green total cost, where the green market price equals the traditional market price plus the environmental cost margin that covers the cost of making the business environmentally friendly.
Dear @Lucio Muñoz, I think that environmentally responsible companies can not practice prices above the market or rely on this scenario to make a profit. I see that, just as the idea of exploiting the personnel lived in the nineteenth century was abandoned, it is necessary to adopt the view that the environment is an integral part of business activity.
Dear Roberto I agree, " it is necessary to adopt the view that the environment is an integral part of business activity" and to do that you need to internalize the cost of being environmentally friendly in the pricing mechanism of the traditional business, and to understand how that would work you need green micro-economics and green macroeconomic so you can make sense of perfect green market competition....that is technically what the brundtland commission called in 1987 to go beyond business as usual and where Rio +20 conference in 2012 was supposed to go when it shifted to green economy and green growth thinking....
I intend to share ideas this year on how this can be done:
From Traditional Markets to Green Markets: A Look at Markets Under Perfect Green Market Competition
https://www.researchgate.net/project/From-Traditional-Markets-to-Green-Markets-A-Look-at-Markets-Under-Perfect-Green-Market-Competition
Have a nice day Robert and thanks for your comment!
Dear @Lucio Muñoz, thanks a lot. I'm studying carefully your ideas. We have great convergence: The Body Shop has achieved the character of premium product through its approach. As a result, in addition to greater profitability, it obtained free advertising for a long period.
Those interested in green market thinking may find the following article full of food for thoughts
From Traditional Markets to Green Markets: A Look at Markets Under Perfect Green Market Competition
https://www.researchgate.net/publication/330617155_From_Traditional_Markets_to_Green_Markets_A_Look_at_Markets_Under_Perfect_Green_Market_Competition
https://www.researchgate.net/publication/330701187_From_Traditional_Markets_to_Green_Markets_A_Look_at_Markets_Under_Perfect_Green_Market_Competition
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