Title : A FRAMEWORK FOR ANALYSING SUSTAINABILITY TRADE-OFFS. FOCUS AT COMPANY LEVEL
Author(s) : Ioana Filipas, François Marmier, Nathalie Picard
Abstract : This paper begins with a historical synthesis of the concept of sustainability. This is followed by a multi-level classification of sustainability key performance indicators (KPIs). Following the analysis, a framework is proposed for integrating the three pillars of sustainability - economic, environmental and social responsibility - into the management of a company. It is based on economic, management and optimisation knowledge. We have developed four different models with different objective functions that show the impact of companies’ decisions related to resource management in their production and the introduction of taxes imposed by public authorities to promote one specific pillar of sustainable development. The simulations carried out on the basis of these models make it possible to analyse, in an original way, the impact of incentives designed to encourage firms to internalise their environmental, social and economic externalities.
Key-words : sustainability, externalities, Triple Bottom Line
JEL Classification : Q5 ; Q51, Q58s