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The Economics of Sustainability

The Economics of Sustainability

BlueSky Thinking Summary

The article explores how sustainability can become a genuine "triple win"—benefiting society, consumers, and companies—when rooted in solid economic logic.

Using foundational demand and cost curves, it shows that sustainable practices need not raise prices or sacrifice profits.

For instance, retreaded truck tires slash per-kilometre costs by up to 40%, cutting emissions and boosting fleet margins.

Similarly, electric ferries, despite higher purchase prices, become more economical over their lifecycle due to significantly lower operating costs.

The piece emphasizes that sustainability often demands a long-term view: short-term cost-focused leaders may miss out on lasting advantages.

The authors conclude that executives can “do well by doing good,” provided they identify the right sustainability opportunities, commit to them with clarity, and plan for ongoing strategic integration.

The underlying message: when environmental purpose aligns with economic rationale, sustainability transforms from a moral choice into a smart business imperative—revealing a future-ready path worth exploring