Systems Thinking in Developing Solutions to Sustainability Challenges - Literature review Example

Systems thinking are critical in developing solutions to sustainability challenges Name Institution Course Date Systems thinking are critical in developing solutions to sustainability challenges Introduction In the recent past, the world has experienced emergence of quite a number of wicked problems that not only impact negatively on humans, but also all the living things and the planet as a whole. A wicked problem refers to something or an issue that cannot be solved easily because of the complex nature of the issue resulting from different perspectives on the issue, contradiction and constant changes in the requirement about the issue (Hardisty, Sivapalan and Brooks 2011, p. 1460). Therefore, to make the world good to live and conduct business for the present and future generations, individuals, corporations and governments are undertaking a number of sustainable initiatives to make this a reality. Climate change is a major problem that affects the entire planet today. However, carbon pricing has emerged as one of the wicked problems that has gained a lot of attention as a means of addressing the problem of climate change. Carbon pricing is considered a wicked problem because of the complexity and controversies surrounding the use of carbon pricing as a strategy for addressing climate change and promoting sustainability (Nussbaum 2015). Systems thinking, however, have gained recognition as a strategy for addressing sustainability issues, such as the placing price on carbon. Despite the increased recognition of systems thinking as an approach for addressing sustainability issues, Pascala and Socolow (2004,p. 969) note that the efficacy of this approach remains a controversial issue as there are those who believe that systems thinking do not offer a solution to sustainability challenges. This paper explains why systems thinking are critical in developing solutions to sustainability using the “placing of price on carbon” as a wicked problem case. The Concept of Systems Thinking Systems thinking are a concept that has gained a lot of attention in the present day society (Sweeney and Meadows 2010, p. 43). The increased recognition of this concept is attributed to the belief that systems thinking provides a better way of addressing sustainability issues that the modern society is confronted with, particularly the climate change. In fact, the literature is full of theoretical frameworks that pursue systems thinking as an approach to problem solving (Boardman, and Sauser 2008, p. 11). Although systems thinking have been applied in problem solving for many years, the concept is still not well understood by many. Systems thinking, according to Maani and Cavana (2007, p. 36) is a process that involve seeing the interrelationship between things. In other words, systems thinking are a process that helps in understanding the interrelationship between two or more things that make up a system. Boardman and Sauser takes the definition a notch higher by defining systems thinking as an approach to problem solving with a focus on the interdependence between two or more things that make up a system with the objective of determining the pattern of change. Boardman and Sauser’s definition implies that a systems thinker is that individual who evaluates a complex issue through the lens of behavioral patterns rather than just the issue itself. Overall, a system thinker is that person who is broad-minded and looks at the entire system instead of just focusing on a specific context. It is suggested in many literature that, systems thinking provides the best way of addressing most of the wicked problems that the society is confronted with today (Mingers 2006, p. 101; Smith, T 2011, p. 4) . Systems thinking is widely being embraced as a strategy for addressing wicked problems because it ensures that the behaviors of an individual, group of persons or an organization is modeled to make it conform with the sustainability laws. Smith (2011, p. 8) also argues that systems thinking is applied as a strategy for solving complex issues because systems thinking enhances the practitioner’s understanding of the issues being addressed and the fact that systems thinking operates by bringing together economic, social and environmental dimensions of sustainability. As a result, this enables the community to solve the complex issues, thus ensuing the building of a healthy environment for humans and all the living things in it. In fact, Jackson (2003, p. 9) argues that systems provide the best way of solving the complex problems that the world is faced with than any other technique. According to Jackson, systems thinking are a suitable approach to problem solving because it allows for the analysis of the current situation, which is used to predict the things that might happen in the future so that the most appropriate measures are taken to minimize negative consequences should the event occur (Jackson 2003, p. 17). Systems Thinking Models: The Iceberg Model The iceberg model is one of the tools that promotes systems thinking and allows practitioners to contextualize a wicket problem as part of the entire system. The iceberg model looks at four issues when addressing a problem, which includes the events, patterns of behavior, systems structure and mental models (Maani and Cavana 2007, p. 4). Therefore, by connecting an event to behavioral patterns, systems structures and mental models, the iceberg tool allows for the visualization of the structures underlying the event. The iceberg model operates on the assumption that, just like 90% of iceberg is normally hidden beneath the water, so are the structures that are also hidden beneath the surface (Mingers 2006, p. 23). Therefore, as long as these structures can be identified and connected to the underlying events that are being seen, then it becomes possible to come up with a lasting solution that target the entire system rather than short-term reactive solutions. Figure 1: The Iceberg Model Source: Maani and Cavana (2007) Sustainability Model: Three Pillar Model Sustainability has become a necessity to ensure the wellbeing of the current and future generation. Although sustainability was not considered an important thing in the past, the massive destruction of the environment characterized by climate change has made the individuals, corporations and the society recognize the importance of adopting sustainable initiatives to ensure environmental sustainability. However, sustainability is based on the Three Pillars of Sustainability, which includes social, economic and environmental pillars (figure 2) (Higgins 2015, p. 22). The social pillar emphasizes on balancing the needs and interests of individuals and that of the group. In the business setting, corporations promote social pillar of sustainability by implementing programs that seeks to enhance the wellbeing of all stakeholders, including investors, employees, customers, suppliers and the community. Woolworth, for instance, promote the social pillar of sustainability by providing training program for its workforce, engaging in women empowerment, providing food donation to the less fortunate and promoting sustainable agriculture in Australia and countries, where it operates. Economic pillar of sustainability is a pillar that seeks to promote effective and efficient utilization of economic resources for the benefit of a company and its stakeholders (Higgins 2015, p. 24).  The economic pillar advocates efficient and fair distribution of resources for the benefit of everyone. Finally, the environmental pillar of sustainability is a pillar that promotes the adoption of practices that minimizes the adverse effects on the environment. As such, sustainability is important in the sense that it ensures that the all the three pillars of sustainability are advanced in the course of operating a business. Figure 2: Three Pillars of Sustainability Source: Higgins (2015).  Placing a Price on Carbon: A Wicked Problem Carbon pricing is considered one of the wicked problems that the world is currently grappling with as the world seeks solutions to climate change. The New York Times (2016) report indicates that the world’s average temperatures have increased significantly in the recent past due to global warming effect. In fact, currently, no part of the world is spared of the adverse effects of climate change that increased rising sea levels, increased prolonged droughts and flooding, as well as glacial movements among others. To address climate change, many strategies have been proposed key among them being carbon pricing. Presently, approximately 40 nations across the globe use carbon pricing mechanisms, such as carbon taxing and emission trading systems for combating climate change (The World Bank 2014). Placing a carbon on price is a climate change strategy that begins by capturing the external costs associated with greenhouse emissions. The external costs are the costs that the public pays because of carbon emissions and includes damages to crops, rise in sea level or health care costs resulting from droughts, flooding or heat waves. Once these costs have been ascertained, they are tied to the sources via a price on carbon, according to the New York Times (2016). In other words, carbon pricing involves taxing companies based on the carbons they emit to the environment. Despite the growing support for carbon pricing as a strategy for addressing climate change, placing a price on carbon is considered a wicked problem because there are diverse views on the efficacy of carbon pricing in addressing climate change and promoting sustainability (The World Bank 2014). As earlier stated, a wicket problem is that problem that is complex, controversial, messy and confusing. As such, addressing a wicked problem such as carbon pricing requires persons or corporations to take a “bias towards action” so as to find a solution notes Rivers (2014). Application of Systems Thinking in Addressing the Problem of Placing a Price on Carbon It is acknowledged worldwide that climate change is serious problem that needs to be addressed urgently. Although carbon pricing has been proposed as one of the best solutions to climate change with more than 40 countries already adopting the strategy, this approach of placing a price on carbon has been marred by a lot of controversies among policymakers and business community, thus hampering its adoption and implementation in many states. However, the problems associated with carbon pricing as a solution to climate change can be best addressed through systems thinking (Christensen, Duncan, and Phillips 2012, p. 19). This is because systems thinking allow problem solvers to think deeply about the things that happen in the external environment and how the society relates to the system and the problem to be addressed (Sweeney and Meadows 2010, p. 66). For instance, by adopting systems thinking, people are made to understand that the best way to address climate change is not to address the root cause of climate change rather than the end result or the symptoms of climate change. And this is made possible by carbon pricing that seeks to shift the burden from carbon emission to the individuals or businesses that are responsible for it and those who are capable of reducing it (Rivers 2014) In this respect, it emerges that systems thinking are an effective approach for addressing the problem of carbon pricing in the sense the main focus of system thinkers is on the system and not the symptoms. Systems thinking also act as an effective paradigm for addressing sustainability challenges, such as carbon pricing because systems thinking is adopts a holistic approach to solving complex issues (Maani and Cavana 2007, p. 91). As such, in solving the complex issues associated with carbon pricing as a means of addressing climate change, systems thinkers will adopt a holistic approach by considering different approaches that can help address climate change through carbon pricing. For instance, systems thinker would consider would consider both carbon pricing mechanisms, such as carbon taxing and emission trading systems and shadow carbon pricing systems to address climate change (Boardman and Sauser 2008, p. 74). Therefore, the use of systems thinking can help address the controversy associated with carbon pricing in the sense that system thinking ensures the adoption of a holistic solution to the problem by taking into consideration all the carbon pricing mechanisms. Additionally, systems thinking are an effective approach to addressing sustainability problem in the sense that a system thinker all the stakeholders with an interest or affected by the sustainability problem, such as companies, the society and environmentalists. Because carbon pricing not only involve but also affects many stakeholders, including private businesses and the society (Metcalf 2009, 63), systems thinking is an appropriate approach by making all the stakeholders be involved in implementing carbon pricing in addressing climate change. Conclusion Climate change is a serious environmental problem facing the entire plant today. The whole world is currently grappling with the effects of climate change that includes rising sea levels, increased prolonged doubts and flooding, as well as glacial movements among others. However, carbon pricing happens to be one of the strategies used by some countries in addressing climate change. Although more than 40 countries currently place price on carbon, the use of these strategy in addressing climate change has been a controversial issue with some countries and businesses opposed to it. However, as illustrated, systems thinking provide a good way of addressing the wicked problems associated with sustainability, such as carbon pricing since system thinking looks at the system as a whole when addressing the wicked problem. References Boardman, J., & Sauser, B 2008, Systems thinking: coping with 21st century problems. CRC Press, London. Christensen, S. A., Duncan, W. D., & Phillips, A 2012, “Regulation of emissions under the carbon pricing mechanism: a case study of Australia’s coal fired electricity sector,” Asia Pacific Journal of Environmental Law, 15, pp. 17-50. Hardisty, P. E., Sivapalan, M., & Brooks, P 2011, “The environmental and economic sustainability of carbon capture and storage,” Int J Environ Res Public Health, vol. 8, no. 5, pp. 1460–1477. Higgins, K 2015, Economic growth and sustainability: Systems thinking for a complex world. Elsevier, San Diego. Jackson, M. C 2003, Systems thinking: creative holism for managers. Chichester, Wiley. Maani, K., & Cavana, R. Y 2007, Systems thinking, system dynamics: managing change and complexity, 2nd edition. Prentice Hall, Auckland. Metcalf, G. E 2009, “Designing a Carbon Tax to Reduce U.S. Greenhouse Gas Emissions,” Rev Environ Econ Policy vol. 3, no. 1, pp. 63-83. Doi: 10.1093/reep/ren015 Mingers, J 2006, Realising systems thinking: knowledge and action in management science. Springer, New York. Nussbaum, A 2015, Carbon pricing triples as companies prepare for climate limits. Bloomberg 20 September 2016, viewed 26 August 2016 http://www.bloomberg.com/news/articles/2015-09-20/carbon-pricing-triples-as-companies-prepare-for-climate-limits Pascala S., & Socolow, R 2004, “Stabilization wedges: Solving the climate problem for the next 50 years with current technologies,” Science, vol. 305, pp. 968–972. Rivers, N 2014, The case for a carbon tax in Canada, viewed 26 August 2016 http://canada2020.ca/canada-carbon-tax/ Smith, T 2011 “Using critical systems thinking to foster an integrated approach to sustainability: a proposal for development practitioners,” Environment Development And Sustainability, vol. 13, no. 1, pp. 1-17. Sweeney, L. B., & Meadows, D 2010, The systems thinking playbook: exercises to stretch and build learning and systems thinking capabilities. Chelsea Green Publishing, London. The New York Times 2016, Proof that a price on carbon works, viewed 26 August 2016 http://www.nytimes.com/2016/01/19/opinion/proof-that-a-price-on-carbon-works.html?_r=0 The World Bank 2014, What does it mean to put a price on carbon? Viewed 26 August 2016 http://www.worldbank.org/en/news/feature/2014/06/11/what-does-it-mean-to-put-a-price-on-carbon   Read More