Economical quality
refers to the overall health and well-being of an economy and its ability to meet the needs of its citizens. In terms of sustainability, economic quality is an important dimension that must be taken into account to achieve sustainable development.
Economic sustainability is the ability of an economy to continue to function over time and meet the needs of its citizens without depleting its natural resources or damaging its environment. This requires the responsible and efficient use of resources and the development of economic activities that are compatible with the carrying capacity of the environment.
An important aspect of economic quality and sustainability is ensuring inclusive, fair and equitable economic growth. This means that economic development should benefit all members of society and not just a few, as well as poverty reduction. Another important aspect is the promotion of sustainable consumption and production practices. This can be achieved by promoting products and services that are environmentally friendly, socially acceptable and economically viable.
It is also important to consider the long-term impact of economic activities on the environment and natural resources. For example, activities based on the extraction and consumption of non-renewable resources may provide short-term benefits but may not be sustainable in the long term, as these resources will eventually run out. To achieve sustainable economic development, it is also important to support small and medium-sized enterprises, as they are often more environmentally friendly and socially responsible than large multinational corporations.
Elements to consider for civil engineers (Of course in cooperation with other professionals from other disciplines) to work on in order to achieve economical-quality sustainable improvements:
+ Life cycle cost
+ Flexibility and adaptability
+ Market ability
+ Antifragility
+ Purchasing power
Technical details soon
Civil engineers can achieve economical quality in relation to sustainability by focusing on the following areas:
- Life cycle cost assessement: Civil engineers can use life cycle cost analysis (LCCA) to evaluate the costs of a project over its entire life cycle, including construction, operation, maintenance and demolition. By considering the total cost of a project, rather than just the initial construction cost, civil engineers can identify more sustainable and cost-effective solutions;
- Energy efficiency: Civil engineers can focus on energy efficiency in their designs and construction practices, using energy-efficient building materials and systems, such as insulation, efficient lighting etc. This can help reduce energy consumption and operating costs over the lifetime of the building or infrastructure;
- Resources efficiency: Civil engineers can also focus on resource efficiency, such as minimizing waste and using recycled materials, which can reduce costs and minimize the environmental impact of a project;
- Sustainable procurement: Civil engineers can consider sustainable procurement practices, such as purchasing materials and equipment from suppliers with sustainable practices, which can reduce costs and improve the sustainability of a project;
- Risk assessement: Civil engineers can incorporate risk management practices, such as identifying potential risks and developing contingency plans, which can reduce project costs and prevent costly delays.
Overall, by considering the life cycle costs of a project, focusing on energy and resource efficiency, using sustainable procurement practices, and incorporating risk assessement, civil engineers can achieve economical quality in relation to sustainability. By doing so, they can help to create more sustainable and cost-effective infrastructure and buildings, benefitting both the economy and the environment.
Major risks to economical quality:
Supply chain disruptions: Companies that rely on non-sustainable inputs or practices may face supply chain disruptions as environmental and social risks materialize, such as water scarcity, terroristic attacts on infrastructure, large scale international wars, extreme weather events, and social unrest. These disruptions can lead to increased costs, lower revenue, and damage to reputation.
Regulatory risks: As governments increase regulations and standards for sustainable practices, companies that fail to comply may face fines, legal action, and other penalties that can harm their financial performance. Also the increase of regulation may cause stagnation, because it is highly difficult to innovate in an environment with too much regulations.
Reputation risks: Companies that are seen as poor environmental and social stewards may face reputational damage that can reduce customer loyalty, sales, and investor interest. In addition, reputational damage can increase the cost of borrowing and insurance premiums.
Opportunity costs: Companies that do not prioritize sustainability may miss out on opportunities to innovate, differentiate, and create value for customers, employees, and communities. These missed opportunities can harm the company's long-term economical performance.
Carbon pricing: As governments introduce carbon pricing policies, companies that are high carbon emitters may face higher operating costs, reduced margins, and lower profits. In this area we recommend the work of the Copenhagen Consensus Center.
Stranded assets: Companies that rely on non-sustainable practices or inputs may face the risk of stranded assets, as governments and investors transition to a low-carbon economy. This can lead to a sudden decline in the value of certain assets, such as coal mines and oil fields, resulting in significant economical losses. It is important to mention that coal, gas and oil will have to stay in the market due to the need of large amount of energy to supply the economical growth needed in order to generate a better future.
Sustainable practices: Implementing sustainable practices can require upfront investments, and some companies may view these costs as a barrier to entry. In addition, renewable energy and other sustainable technologies may not yet be cost-competitive with traditional fossil fuel-based technologies. Organizations that aim to phase out fossil fuels run a major reputational risk, as the general public is jet unaware of the high risks of such a step forward and will walk away from these companies when confronted with the reality that it is absolutly unsustainable even to think technicaly about this issue. These entrprises will go bankrupt when the public start to understand the deepth of this issue.
How to Spend $75 billion to do the Most Good
Bjorn Lomborg | Talks at Google
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Antifragille: Things That Gain from Disorder | Nassim Nicholas Taleb | Talks at Google
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Milton Friedman Speaks: Equality and Freedom in the Free Enterprise System
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3 Ways to Escape the Money Trap of Bad Debt
Shadé Zahrai
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Review of the book "Capital in the twenty first century" by Thomas Piketty
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The developed world is on the brink of a financial, economic, social and political crisis
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