ESM357/SEE-examples/categories.html

Categories of problems, failures and business models

The examples of SEE can be roughly categorized by what type of problems they address, what market or regulatory failure makes them needed and the particular business model that was employed in this example.

It would be interesting to study whether particular business models work better or worse for different problem type/market failure combinations.

Problem types (overly brief summary)

• simple - needs regulation
• information - high requirement or complexity interferes with direct solution
• value conflict - political mediation needed to establish fair distribution
• wicked - information and values change, no actual solution

Level of risk

• often directly related to scale of proposed solution
• invoke cost/benefit analysis or precautionary principle depending on reversibility

Categories of Market Failure

• public goods
• externalities
• monopoly power
• inappropriate government intervention
• imperfect information

Government regulations

• creates a gap
• high impact
• demand

Business models

• pure profit
• hybrid but mainly business- social benefit traded for profit
• hybrid but mainly social organization that makes some profit
• depending on grants and/or philanthropy

Business types

• corporation
• B-corp
• limited partnership
• private ownership
• co-op
• illegal or black market

Types of public benefits that can be quantified (partial list)

• conservation of habitat
• increase or protect biodiversity
• increase water production or quality
• regulate local temperature
• sequester carbon dioxide
• remove pollutants from air or water
• reduce waste to landfills
• better access to recycled materials