The Economics of Sustainability

It’s been two short months since my journey to Hong Kong where I learned about Cities, Sustainability, and Public Policy. Hands down, it was one of the greatest academic experiences of my life. Since this journey, my perspective on sustainable challenges has changed dramatically and I am left with a better understanding of the different spheres of sustainability, especially economics and governance.

We covered a variety of issue areas in our course, including: housing, waste, energy, conservation, and land use. My group was assigned to housing. Currently, this is one of the hottest topics in Hong Kong; particularly because such a large portion of the population is impacted due to a shortage of affordable housing. While the private market meets the housing needs of the wealthy and the government meets the housing needs of the poor and elderly, the housing needs of the middle class are unmet.

This is considered a market failure because the demand for affordable housing far outweighs the supply. However, the current government response to this shortage comes in the form of public housing with very little support for those who don’t meet the qualifications. So who happens to fall into this middle class? This demographic includes professionals and students who will eventually join the workforce. We learned that upon graduation many college graduates apply for public housing in the hopes of leaving their family home and moving out on their own.

I couldn’t help but empathize with students whose chances of affording a home and starting a family were hindered by the housing crisis. I wondered if I would be motivated to be a high-performing and productive employee if I did not have that incentive. In fact, I wondered about productivity and incentives throughout the entire project. A professor once told me that in order to impact any real change in sustainability, we have to start with the economics. It’s not easy but it is essential to achieve sustainability.