Economics of Sustainability PDF

economics of sustainability Week 1: Agriculture, Hunger, and Malnutrition Sustainable Development Goal 2 (SDG 2): Ending Hunger by 2030 SDG 2 is a key pillar of the UN’s 2030 Agenda, targeting not just hunger alleviation but also food security, nutrition improvement, and sustainable agricultural p...

economics of sustainability Week 1: Agriculture, Hunger, and Malnutrition Sustainable Development Goal 2 (SDG 2): Ending Hunger by 2030 SDG 2 is a key pillar of the UN’s 2030 Agenda, targeting not just hunger alleviation but also food security, nutrition improvement, and sustainable agricultural practices. Major objectives include: Eradicating Hunger: By 2030, ensure no one suffers from hunger, especially vulnerable groups like children, women, and the elderly. Safe, Nutritious, and Sufficient Food: All people should have access to food that meets health standards. Doubling Agricultural Productivity and Incomes: The focus is on small-scale farmers, aiming to boost their productivity, incomes, and quality of life. Access to Resources: Equal access to essential agricultural resources, such as land, water, and inputs, along with the necessary knowledge and training, is emphasized. Adaptation to Climate Change: Agriculture should integrate with local ecosystems, fostering resilience to climate impacts, extreme weather events, and resource scarcity. Trade and Market Reforms: The goal encourages removing trade restrictions and market distortions to facilitate better access to global food markets. A key distinction of SDG 2 compared to past goals is its integral approach—it emphasizes interconnected systems for addressing food issues rather than responding only to hunger crises. Global Data on Hunger and Malnutrition Hunger and malnutrition remain prevalent globally, though the specific focus varies by region. Developed Nations (e.g., Netherlands): Hunger is largely eliminated, but issues like malnutrition, including overnutrition (obesity), persist. Malnutrition Worldwide: Widespread malnutrition includes deficiencies in essential nutrients, undernutrition, and overnutrition. These issues require careful monitoring, particularly as they contribute to developmental, economic, and health-related challenges. Insights from Hendriks (2018): From Hunger to Nutrition in Sustainable Ecosystems Hendriks (2018) emphasizes that SDG 2 has shifted the focus from merely addressing hunger to improving overall nutrition. This paper advocates a proactive, systemic approach to ensuring food security within sustainable ecosystems, replacing the old model that was reactive and crisis-driven. Key Points of Hendriks’ Analysis Focus on Nutrition Over Hunger: The primary SDG shift is from merely providing food to ensuring adequate nutrition, focusing on a balanced, nutritious diet for improved health and productivity. Resilient Food Chains: Sustainable food security requires robust food chains, not temporary relief. A multidisciplinary approach is needed, calling on economists, environmental scientists, and other experts to collaborate. Development Benefits of Nutrition: Better nutrition enhances individual development, increases income potential, raises food demand, and drives overall economic growth, creating a positive feedback loop. Critique of Past Approaches Incident-Driven Aid: The old system was largely reactive, responding to crises without providing structural solutions. Aid often went hand-in-hand with environmental degradation due to unsustainable agricultural practices. Challenges Identified: Hendriks outlines four significant issues: ○ Insufficient food supply in some regions. ○ Insufficient demand in other regions. ○ Imbalances in the market prevent smooth supply-demand integration. ○ Lack of incentives for sustainable production and consumption. Solutions Proposed by Hendriks Addressing Malnutrition vs. Hunger: Simply solving hunger doesn’t prevent malnutrition; diets must be nutritionally balanced. Economic Dynamics of Pricing: Higher prices can increase farmer income, stimulating production, but may also lead to unintended consequences, such as urban obesity from dietary shifts. Complexity of Economic Growth and Nutrition: Increased income doesn’t always translate to better nutrition, as individuals may prioritize other essentials (mobility, communication) over a balanced diet. Urban migration often exacerbates obesity as energy intake remains high while physical labor decreases. Integrated Approach to Food Security Hendriks argues for an integrated solution encompassing demand, supply, market stability, climate change, and resource competition. The 2007–2008 food crisis highlighted this need, demonstrating how malnutrition increased as global systems struggled to keep pace with demand and climate impacts. Amartya Sen’s Perspective on Food Security and Distribution (1982) Sen’s 1982 work challenges the Malthusian notion that food scarcity is the root cause of famine, arguing instead that access, ownership, and distribution are the critical issues. Using the Bengal famine of 1943, Sen illustrates that famine can occur even when food supplies are adequate. Key Themes from Sen’s Analysis Critique of Malthusian Theory: Malthus believed population growth outpaces food supply, leading to starvation. Sen, however, argues that technological advances can offset this growth and that crises are often due to distribution failures, not absolute scarcity. Case Study - Bengal Famine (1943): The Bengal famine occurred despite sufficient food supply due to factors like unemployment, illness, declining prices for other goods, and high food prices. Sen concludes that: ○ Ownership and Exchange Rights: Inequality in these areas, not food quantity, leads to famine. ○ Social and Economic Inequality: Addressing famine requires equitable distribution mechanisms, especially during crises. Sen’s Policy Recommendations Sen outlines three policy approaches: Anticipation: Equalize access to resources and exchange opportunities, especially for vulnerable groups. Relief: Ensure food entitlement and guard against private markets siphoning food away from high-need areas during crises. Prevention: Guarantee purchasing power for vulnerable groups and secure ownership rights (e.g., land and grazing rights). Effective prevention also includes social safety nets in wealthier nations. Sen concludes that food insecurity stems primarily from distributional issues, intertwining economics, politics, and law. Role of Self-Interest in Addressing Hunger The lecture explores the idea that reducing hunger has practical benefits beyond ethical imperatives. Economic rationalism suggests that preventing hunger in regions like Africa and Asia can curb migration pressures on Europe, as hunger drives migration—a significant concern for the EU. Guest Lecture: Dutch Agricultural Model 1. High Agricultural Productivity and Global Role The Netherlands stands as the second-largest agricultural exporter globally, despite its small size and dense population (over 1,300 inhabitants per square mile). This success is attributed to several factors: Advanced Technology Use: Dutch agriculture leverages cutting-edge technology such as greenhouses, precision farming, and resource-efficient machinery. Resource Efficiency: High yields are achieved with less land and water, reducing the need for traditional farming inputs and fossil fuels. Research and Innovation: Located in the "Food Valley," WUR leads in fields like climate-resilient crops, sustainable livestock, and experimental farms, similar to California’s Silicon Valley for tech innovation. 2. Historical and Social Influences Dutch agriculture’s focus on food security and resourcefulness has historical roots: Famine Trauma: The Netherlands experienced severe food scarcity during World War II, with 10,000–20,000 deaths due to starvation in German-occupied areas. This event fostered a national commitment to "never be hungry again," prioritizing food security and self-reliance. Public Demand for Affordable Food: Dutch citizens expect both high-quality food and low prices, creating tension for farmers who face high production costs to meet environmental standards while earning relatively low incomes. This dynamic highlights market failure, where the financial burden of sustainable practices often falls on the farmers. 3. Applicability of the Dutch Model Internationally The Dutch agricultural model is widely admired, but its transferability to other countries is complex: High Capital and Technology Requirements: This model relies on substantial investment in advanced technology and infrastructure, which may not be feasible for many developing nations. Implementation requires access to financing, training, and technical expertise. Potential for Selective Adaptation: Despite the challenges, developing countries could selectively adopt aspects such as water-saving techniques, crop rotation, and greenhouse use to increase local food security. This would need a supportive framework for training and initial investment to overcome local resource constraints. 4. Sustainability and Environmental Impacts The Netherlands’ agricultural system is productive but faces significant environmental issues: Nitrogen Emissions and Soil Degradation: High-density farming contributes to nitrogen emissions, impacting air and water quality. Soil degradation and groundwater salinization are further concerns, as intensive agriculture places stress on natural resources. Environmental Protection Efforts: Farmers are adopting sustainable practices, including nutrient management and limited chemical use, to mitigate ecological impacts. At the policy level, the Netherlands advocates for a coordinated European Union approach to food security and environmental protection. 5. Import and Export Dynamics The Netherlands plays a unique role in global agriculture, but it does not fully meet its own food needs: Dependence on Imports: Roughly 60% of food consumed in the Netherlands is imported, reflecting the limits of local production in a small, densely populated nation. Export-Driven Model: Approximately 70% of Dutch agricultural output is exported, underscoring the nation’s focus on high-value agricultural exports. This export-driven model is vital to the Dutch economy but raises questions about the sustainability of prioritizing export markets over self-sufficiency. 6. Future Directions and Strategic Implications Looking ahead, Dutch agriculture is exploring sustainable growth pathways and grappling with strategic questions on food security: European-Level Food Security: Recognizing that complete food self-sufficiency on a national level is impractical, the Netherlands argues that food security should be addressed at the European Union level. This strategy would benefit from shared resources and coordinated policies to balance productivity with environmental goals. Values-Based Discussions: Dutch policymakers stress the need for values-based debates around food security. They argue that purely legal or economic perspectives often neglect ethical dimensions, such as fair compensation for farmers and the social costs of low-cost food expectations among consumers. Week 2: Environmental Economics Introduction: Sustainable Development Goals (SDGs) and the Environment The United Nations' Sustainable Development Goals (SDGs) outline various targets directly related to environmental sustainability. Key SDGs include: Goal 7: Access to affordable, reliable, and sustainable energy for all. Goal 8: Promote sustained, inclusive, and sustainable economic growth. Goal 9: Develop resilient infrastructure and foster inclusive, sustainable industrialization and innovation. Goal 11: Create inclusive, safe, resilient, and sustainable cities. Goal 12: Promote sustainable consumption and production patterns. Goal 13: Take urgent action to address climate change. Goal 14: Conserve and sustainably use oceans and marine resources. Goal 15: Protect and restore terrestrial ecosystems, manage forests sustainably, combat desertification, and halt biodiversity loss. Goal 17: Strengthen global partnerships to support sustainable development. Key Focus Climate Change: Recognized as the most urgent environmental challenge, requiring immediate action and effective policy responses. Trends in Environmental Sustainability Key Sectors and Contributors Certain sectors (such as energy production and manufacturing) and certain countries are major contributors to CO₂ emissions. Understanding these contributors is essential to designing targeted interventions. CO₂ Emissions Over Time Historical trends indicate fluctuations in CO₂ emissions, often impacted by economic crises and policy shifts. Since the 1992 Rio Earth Summit, 26 international climate conferences have aimed to address these trends, although actual progress remains mixed. Goals vs. Realizations Despite ambitious targets, there is a notable gap between goals and tangible progress in emission reductions. Economists recognize a lack of sufficient policy instruments, highlighting the need for more effective strategies. Major Challenges 1. International Cooperation: Achieving global alignment on climate action has proven challenging. Notable conferences include: ○ Rio Earth Summit (1992): Set foundational goals for sustainable development. ○ COP26 in Glasgow (2021): The first agreement to reduce coal use and increase climate finance for developing countries. 2. Market and Innovation Barriers: Current prices do not adequately account for environmental impacts, and there is insufficient innovation in green technologies. Role of Economists in Environmental Sustainability Economists can contribute to environmental policy in several ways: 1. Cost-Benefit Analysis (CBA) of Emission Reduction Options ○ Evaluates the trade-offs of various environmental policies, focusing on the costs and benefits of emissions reduction strategies. 2. Policy Instruments ○ Taxes: Raising fossil fuel prices to reduce consumption. ○ Tradable Rights: Allowing businesses to buy and sell emission allowances to create a market-driven approach. ○ Subsidies: Financial incentives for renewable energy and innovation. ○ Regulation: Setting legal limits on emissions through international treaties. ○ Public Information Campaigns: Educating the public to shift preferences toward sustainability. Valuing the Unvalued and Discounting Economists assess "unvalued" environmental factors using various methods. Discounting: Used to calculate present value for future environmental impacts, though its use is controversial as small changes in discount rates can lead to vastly different outcomes. Cost-Benefit Analysis (CBA): Key Concepts and Calculations 1. Net Present Value (NPV) ○ Private projects are viable if NPV is positive.  ○ Environmental CBAs include both private and environmental costs: 2. Discount Rate Implications ○ High discount rates reduce the present value of long-term environmental impacts. ○ Low discount rates favor future generations by giving more weight to future environmental costs. ○ Examples show how adjusting the discount rate changes project outcomes, demonstrating the importance of selecting an appropriate rate in CBAs. Pricing and Parry et al. (2021) Analysis on Energy Subsidies Key Findings on Energy Prices "Right Price": Defined as the price that includes private costs, external environmental costs, and consumption taxes. Findings reveal large subsidies for fossil fuels, especially in coal and power generation, which hinder climate progress. Types of Subsidies 1. Explicit Subsidies: When private costs are underpriced. 2. Implicit Subsidies: When environmental costs and forgone taxes are underpriced (e.g., local air pollution and CO₂ emissions). Effects of Right Pricing The IMF estimates that pricing energy correctly could reduce CO₂ emissions by 36%, making it possible to limit global warming to 1.5°C. Paper on Innovation: Key Takeaways from IEA Report Innovation in Clean Energy: Essential for sustainable development. The IEA’s Energy Technology Perspectives 2020 stresses the need for innovation in technology to meet climate goals, with public investments and supportive policies necessary for success. Guest Lecture Summary: Economics and Climate Change Market Exchange: Economics involves exchanges between buyers and sellers, but markets are imperfect, leading to externalities like global warming. Climate Change as Market Failure: ○ Seen as an economic issue due to market failure. ○ Pricing carbon is crucial but insufficient and may cause inequalities. Europe’s Approach: ○ Green Deal and Climate Law aim for net-zero emissions and climate neutrality. ○ Cap-and-Trade System (ETS): Limits emissions per firm, but coverage and efficiency are limited. System has become politically influenced, affecting effectiveness. Taxation and Equity: ○ Households currently pay more in emissions-related taxes than firms. ○ Progressive tax system suggested for fairer distribution of costs. Sustainable Industry: ○ Shift to a bio-based industry is possible, but involves opportunity costs. ○ Investment in green tech needed for this transition. Stock vs. Flow Problem: ○ Flow: Annual emissions rate. ○ Stock: Total accumulated emissions in the atmosphere. ○ Forests act as carbon sinks to offset emissions, helping to manage stock levels. Break-Even Point: ○ Achieved when net CO₂ reduction is positive. ○ Important to reach this soon to prevent worsening climate effects. Biomass: ○ Renewable energy source but requires sustainable management. Multilateral Climate Agreements: ○ Benefits: Eliminates free-riders and ensures shared responsibilities. Levels the playing field by setting standard emissions goals. ○ Drawbacks: National interests conflict, making implementation challenging. ○ Dutch policy inspired by these agreements; some progress achieved. Week 3 : Sustainable Development Goals (SDGs), Markets, and Instruments 1. Introduction to Sustainable Development Goals (SDGs): SDGs: ○ Composed of 17 goals, addressing quality of life, nature, justice, equity, and equality under the principle of "leave no one behind." ○ Expanded from Millennium Development Goals (MDGs) (8 goals focused on poverty, education, child health, gender equality, etc.). ○ Designed to tackle global challenges that cannot be solved at the national level. ○ Progress Outlook: Achieving the SDGs by 2030 is unlikely due to global divisions. 2. Target Setting: Importance of clear, actionable targets for tracking progress toward SDGs. Targets must balance economic growth with minimizing negative externalities like environmental degradation. 3. Markets and Goals: Varieties of Capitalism: ○ Differences in capitalist models: American model: Prioritizes short-term profits. Continental European model (Rhenish capitalism): Focuses on collaboration with government and long-term goals. ○ Shift needed toward responsible capitalism, balancing economic and social development. Role of Innovation and Institutions: ○ Key elements for success: Innovation, rule of law, inclusive institutions. ○ Institutions are crucial in determining national success or failure (referencing Why Nations Fail). 4. Instruments to Reach Targets: Economic Models: ○ Shift from GDP-focused growth to "doughnut economics": Balance between economic activity and ecological limits. ○ Emphasis on responsible growth over de-growth. Corporate Responsibility: ○ Businesses must integrate economic and societal value into their models. ○ Aligning business visions with global issues like climate change and energy is essential. Government’s Role: ○ Governments can incentivize companies to act responsibly and enforce regulations if necessary.  ○ A common agenda and collaboration are critical for global progress. Guest Lecture Summary: Former Prime Minister Three Main Themes: 1. Business Models: ○ Must consider both economic and societal value. ○ Need alignment with major global challenges like climate change. ○ Collaboration is key; isolated efforts will not work. 2. SDGs: ○ Represent global ambitions but face challenges due to international fragmentation. ○ Practical achievement by 2030 is unlikely. ○ The West has failed to create a sustainable and inclusive economy. 3. Responsible Capitalism: ○ Balancing economic and social development is vital. ○ Short-term profit-driven models must give way to long-term thinking. ○ Importance of CEO motivation, supported by government intervention when needed. ○ The future will see a battle between capitalism models: Anglo-Saxon capitalism (profit-driven) vs. Rhenish capitalism (collaborative and government-aligned). Key Takeaways: Transition to Sustainability: ○ Industries like energy in the Netherlands are transitioning to sustainability but require accelerated efforts. Revenue Sharing: ○ Equitable distribution of innovation benefits is critical. Global Cooperation: ○ Solving global issues necessitates collaborative approaches. Week 4 : Labor Market 1. Sustainable Development Goals (SDGs) SDG 1.5: Enhance resilience of the poor to climate-related and other shocks by 2030. SDG 8.5: Achieve full and productive employment for all, emphasizing equal pay and opportunities by 2030. SDG 8.8: Promote safe and secure work environments, particularly for vulnerable workers, including migrants. 2. Labor Market Developments Key Factors Influencing Labor Market: ○ Globalization, digitization, demographic shifts, and climate change. Pace, Scope, and Impact: ○ Rapid changes in job opportunities, with increased unpredictability and fragility. ○ Rise of non-traditional employment relationships post-COVID. ○ Task outsourcing: digitization (e.g., online banking) and offshoring. Challenges for the Poor: ○ Opportunities: High-skilled workers benefit from tech-based roles with fewer hours and better pay. ○ Disadvantages: Low-skilled workers face declining wages despite longer hours. ○ Shocks: Environmental and economic shocks disproportionately harm the poor. ○ Regional Disparities: Income and redistribution efforts vary significantly between rich and poor countries. 3. Paper: Diffenbauch and Burke (2019) Focus: Impact of climate change on economic inequality. Findings: ○ Economic effects of climate change exacerbate inequalities: hot countries suffer productivity and health losses, while cooler countries may benefit. ○ Non-linear temperature-growth relationship: Hot countries: 25% higher inequality. Cold countries: 25% lower inequality. ○ Rich countries, historically high CO₂ emitters, benefit economically from fossil fuel use while poorer countries bear the costs. Conclusion: ○ Climate action (e.g., reducing fossil fuel dependency) serves as both environmental and developmental aid. 4. Paper: Sanchez et al. (2021) Scope: Effectiveness of tax-benefit systems during the COVID-19 pandemic across Belgium, Italy, Spain, and the UK. Findings: ○ Pre-compensation: Lower-income households lost more. ○ Post-compensation: Losses were mitigated, with lower-income groups often better protected in relative terms. ○ System Design: Existing and supplementary measures varied in effectiveness. ○ Poverty Impact: Absolute poverty risk increased, despite stable relative inequality (Gini). Recommendations: ○ Structural reforms (e.g., Universal Basic Income) might improve crisis resilience. ○ Harmonization of responses across EU countries could reduce inter-country inequalities. 5. Guest Lecture by Maudie Derks (Acture CEO) Acture’s Role: ○ Leading provider of social security services in the Netherlands, managing €25 billion in insured wages with innovative risk solutions. Historical Context of Social Security in the Netherlands: ○ Evolution from public systems (1913–1990s) to a hybrid public-private model. ○ Shift towards employer responsibility (e.g., 104 weeks sick pay obligation). ○ Legacy systems resulted in inefficiencies, with growing gaps in coverage for independent workers. Current Challenges: ○ Increasing labor flexibility and aging populations strain traditional safety nets. ○ Many independent workers lack proper social security protections. ○ EU initiatives, such as Directive 2019/1152, push for baseline standards across member states. Proposed Solutions: ○ Reform outdated systems with modern, technology-enabled safety nets. ○ Include independent workers in mandatory protections. ○ Transition gradually to avoid disruptions. Week 5: Health Care Main Topics Covered 1. Sustainable Development Goals (SDGs) ○ Goal 3: Ensure healthy lives and promote well-being for all ages. Targets include reducing maternal and child mortality rates and achieving universal health coverage (UHC). The COVID-19 pandemic revealed disparities in countries’ healthcare capacities. 2. Developments in Health Care ○ Life expectancy improvements across age groups but varies globally. ○ Spending on healthcare correlates with life expectancy, though inequality persists, especially in the USA. ○ Key drivers of cost increases: Aging populations and increasing demand for care. Technological advancements offering new but expensive treatments. ○ Lifestyle-related diseases emphasize the need for preventive care. ○ Healthcare access remains inequitable; only some countries provide free and universal healthcare. 3. Insights from Lorenzoni et al. (2019) ○ Health spending grows faster than economic growth, crowding out other costs. ○ Scenarios modeled by OECD include enhanced productivity, cost containment, and pressures from aging and technology. ○ Policy challenges: Raising taxes or private financing risks inequity. Prevention strategies lack sufficient financial incentives. Enhancing productivity through technology (e.g., AI, automation) may help curb rising costs. 4. Wouters et al. (2021) ○ Challenges in global vaccine accessibility highlighted by the COVID-19 crisis. ○ Policy focus on affordability, production, and equitable allocation of essential medicines and vaccines. Key Insights from Guest Lecture by Jeroen Tas State of Global Healthcare ○ Healthcare costs outpace GDP growth, with Western systems wasting up to 25% of resources. ○ Social determinants, such as zip codes, are stronger predictors of health outcomes than genetics. ○ Environmental impact: Hospitals contribute more CO2 emissions than aviation or shipping. Urgency in Addressing Healthcare Challenges  ○ 50% of the global population lacks adequate healthcare access. ○ Staffing shortages and rising healthcare costs in developed countries threaten sustainability. ○ Behavioral and socio-economic factors account for 70% of health outcomes. Technological Solutions for Sustainable Healthcare ○ AI and IoT applications can address staffing issues, enhance diagnosis, and improve patient engagement. ○ Transitioning to circular models—reuse, refurbish, and recycle equipment—reduces environmental footprints. ○ Platform ecosystems enable integrated and personalized care. Future Directions ○ Shift towards value-based care models emphasizing prevention and efficiency. ○ Technology-enabled platforms support virtual and networked care to expand access and reduce costs. Takeaways Global healthcare systems face unsustainable financial and environmental trajectories. Addressing inequities requires combining preventive care, technological innovation, and sustainable policies. Collaboration across sectors and the adoption of integrated digital solutions can redefine healthcare delivery, particularly in underserved regions. Week 6: Education SDG 4: Ensure Inclusive and Equitable Quality Education Importance: Reduces poverty, inequality (e.g., women, disabled individuals). Drives economic development. Lifelong learning aligns with the labor market's constant evolution. Key Actors: Private sector initiatives. Government interventions. Implementation Approaches: Legislation, policy planning, and coordination. Validation and accreditation of education. Curriculum development and teacher training. Progress & Challenges: Decline in global out-of-school populations across all education levels (impacted by COVID-19). Tertiary enrollment shows significant disparities. Education inequality persists, especially for low-income populations. Gender gaps are narrowing, but women lead in higher education enrollment. Basic facility access remains a challenge in Africa, and quality education is uneven globally. Budget allocation differs even within developed countries. Paper: Coady and Dizioli (Focus on Education & Income Inequality) Key Themes: Income inequality drivers: Globalization, labor market liberalization, tech advancements, low-skill labor participation, fiscal system issues, bargaining power disparities, and social trends (e.g., high-earning couples). Positive effects: Growth stimulation and poverty reduction. Education's role: Reduces income inequality by breaking intergenerational poverty, increasing opportunities, and reducing reliance on fiscal redistribution. Methodology Highlights: Human capital model: Income distribution depends on education level and its distribution.  Addressed endogeneity issues and heterogeneity across countries/age groups using dynamic panel estimation. Findings: 1. Schooling inequality: Increases income inequality, especially in developing economies. 2. Schooling levels: Positive but insignificant effects on income inequality reduction. Conclusion: Focus on addressing schooling inequality, particularly in developing countries. Paper: Brixiova (Focus on Women & Entrepreneurship) Themes: Men dominate entrepreneurship in developing countries; women's participation is often in informal/low-skilled sectors. Women face lower starting education levels, confidence gaps, and skill deficiencies. Central Question: What is the impact of training on women’s entrepreneurial success? Methodology: Tools: Theoretical modeling and empirical analysis (surveys, interviews, focus groups in Eswatini). Key Results: Higher skills → Higher sales. Trained women outperform men in entrepreneurship. Financial training benefits men but not women. Tertiary education benefits women significantly, especially when combined with financial training. Tenacity: ○ For men: Increases training effectiveness. ○ For women: Drives sales growth. Conclusion: Education alone is insufficient; targeted entrepreneurial training is crucial. Tertiary education enhances the ability to benefit from further training. Guest Lecture Insights Education & Sustainable Development: Lifelong learning is critical for adapting to technological advancements (e.g., AI in healthcare). Value-based reimbursement models are essential for sustainable healthcare. AI and Ethics: AI improves efficiency (e.g., lung scans, labor law applications). Ethical dilemmas arise regarding accountability for algorithmic mistakes. Takeaway: Education and social skills must be aligned with evolving tech landscapes for sustainable development and effective problem-solving.