Eco-linkages and an optimal portfolio of resources: A step towards sustainable development

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JEL classification

• Optimization Techniques; Programming Models; Dynamic Analysis
• Organization of Production
• Sustainable Development

Keywords

elimination of tradeoffs, industrial ecology, optimal portfolio, sustainability

Abstract

Industrial ecology has been promoted as a possible method to reach sustainability, by redesigning industry as an organisms-like community of companies, in order to increase materials and energy efficiency. A common direction has been mainly focused on the end of the production process, while the concern of the portfolio of resources involved in the manufacturing process has been limited. This paper evaluates and presents the implications of developing eco-linkages supported by a portfolio designed using the DNP method. The author argues that the new approach can deliver significant benefits to economic players in terms of profits/added value and environmental protection. In this context, sustainability becomes good business, while pollution means lost money.