Dean, T. J., & McMullen, J. S. (2007). Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through entrepreneurial action Flashcards
What are market failures?
Situations where markets fail to utilize all possible gains from trade, which may result from complete absence of markets or inability of existing markets to achieve Pareto efficiency.
What do environmental economics highlight regarding market failures?
Market failures can lead to environmental damage due to the inability to fully account for social costs in the production process.
What does wrongful allocation of environmental assets, such as the atmosphere, cause?
Unchecked environmental degradation harming the sustainability of natural assets.
Why are market failures a crucial area of focus in environmental economics?
Correcting or eliminating market failures can improve market efficiency while reducing environmental degradation.
What are two key themes in entrepreneurial opportunity arise from market failures?
Exogenous shocks that alter demand or supply. (for example COVID 19)
Asymmetries in awareness of these changes due to individual differences in knowledge or alertness.
How do environmental entrepreneurs enhance ecological sustainability?
Environmental entrepreneurs enhance ecological sustainability by addressing environmentally relevant market failures.
What market failure categories can create opportunities for sustainable entrepreneurship?
- Public goods
- Externalities
- Monopoly power
- Inappropriate governmental intervention
- Imperfect information
