Moral and Institutional Foundations of Sustainable Technological Entrepreneurship

In this essay, we reflect on the conditions that allow firms to play a leading role in the ecological transition process. The essay starts with an analysis of the technological and economic features of eco-efficient technologies. We argue that they are weak levers for the ecological transition. As eco-efficiency is based on profit-maximising goals, the pace of the transition is unlikely to peak quickly. In fact, this profit motive restrains firms from fully embedding ecological principles in their choices. Some behavioural concerns arise, as rationally bounded firms are likely to pursue uncomplicated and effortless pathways so as to safeguard profits. For instance, firms may pretend to be sustainable, while chasing opportunistic practices such as greenwashing, wokening, and cost shifting. Hence, they cannot lead the ecological transition process. A few consequences derive. First, new moral values must become pivotal criteria in firms' decision-making processes. Second, such a big challenge must become shared and widely accepted in social discourse, so as to involve all economic actors and trigger a general process of institutional change. These are necessary conditions for the ensuing economic and social provisioning to take care of the limits of the Earth. Finally, we suggest that the teaching of economics must also be concerned with making such a change in mindset successful.