I just read the Chapter 2 of "The New Economics of Sustainable Consumption" and this chapter mentioned some failure of the mainstream. They are as followed.
1.princing failures
The ecological modernisation approach to SC is based on a free market system which means the each people aims to satisfaction. However, our real market is different.
2.information failures
The mainstream is based on neo-classical economics which assumes that all the consumers are fully informed, rational, selfish,and weigh up all their options before choosing to make a purchase. In real society, no one can do that.
3.self-regulation failure
In the case of both green and ethical consumption, most companies will not self-restrict, which is on the opposite to the assumption.
to be continued...
Nothing is wrong with our real market and maximising satisfaction when talking about pricing failures. Rather opposite,the wrong thing is current(can I say it?) market mechanism send wrong price signals to both produceers and consumers because the full social and ecological costs are not included in market prices(Gill says).
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