Systems Thinking Is Critical in Developing Solutions to Sustainability Challenges - Coursework Example

SYSTEMS THINKING IS CRITICAL IN DEVELOPING SOLUTIONS TO SUSTAINABILITY CHALLENGES By Name Course Instructor Institution City/State Date Systems Thinking Is Critical In Developing Solutions to Sustainability Challenges Introduction Systems thinking can be defined as a discipline of management, which is associated with system understanding through assessment of interactions and linkages between the components containing the entireness of the system. Placing a price on carbon is considered to be an efficient way of reducing emissions of greenhouse gases as well as decreasing the disruptive risks associated with climate change. Basically, a carbon price offers a moderately direct and simple way of ensuring that the climate change costs are included in the economic calculus behind consumption and investments, which includes the utilisation of fuel and resource. Furthermore, placing a price on carbon transmits a price signal which may widely impact the dispersed decisions related to the economy, assist in directing the future growth of economy toward one with lesser carbon, and over time decrease the climate change effects. The climate change effects are worsened by inadequate mitigation and adaptation decision making, because of the fact that the environment for making decisions is very complex. Therefore, the approach to decision-making and planning is non-existent. The adaptation of Climate change is within the wicked problems domain, which needs new methods of collaboration and decision making and also needs collective learning. Normally, the process of making decisions is practised and perceived as a linear activity, which starts from problem identification to finding other solutions. Adaptive management and Systems Thinking utilise such steps through a feedback system. In Systems Thinking, a problem is not viewed independently, but instead as a part of the larger context or system. Furthermore, feedback is considered to be a crucial part of the Systems Thinking that is scientifically modelled and formally documented. With reference to carbon pricing, this essay seeks to provide evidence that Systems Thinking is critical in developing solutions to sustainability challenges. Discussion Currently, the world is gradually recovering from the worst and longest slowdowns, as a result, numerous studies as cited by Doda (2014, p.3) have started reviewing the relationship between climate change policies and economic fluctuations. Furthermore, there is a growing interest in the design as well as operation the existing instruments used for carbon pricing: emissions trading systems and carbon taxes. The objective of both instruments is to reduce greenhouse gas emissions. The emissions trading systems provide a cap that progressively tightens with the objective of realising a long-term target in the reduction of emissions, and cannot be used to fix the price of carbon. On the other hand, the carbon tax is used to fix the carbon price, which normally surges with time. According to Doda (2014, p.3), economic fluctuations have an effect on how both the instruments work, which in some measure predetermines the annual emissions level. The current international agreement that sets out the uniform minimum price of carbon lacks some serious mechanism for compliance. The carbon price as mentioned by Weitzman (2014, p.47) have to be enforceable and observable; however, there is no practical alternative, which can be used to impose tariff-based penalties on nations that are not complying. Still, Dellink et al. (2014, p.210) believe that placing a price on carbon by means of price mechanisms like emissions trading systems and carbon taxes can result in climate policy framework that is cost-effective. Certainly, both instruments are cost effective since they equalise marginal reduction costs to all individual emitters, and at the same time, offering the incentives so as to find low-cost reduction options using both new and existing technologies. Kennedy et al. (2015, p.2) argue that the emissions of green gases lead to additional costs on the international community through the climate change. Therefore, placing a price on the carbon moves the burden associated with these costs to individual entities found responsible for the green gas emissions. Still, pricing the carbon has resulted in high costs of goods according to the content of their carbon. When the price of the carbon-intensive goods such as the fossil fuels is increased, individuals and businesses are encouraged by the carbon price to buy alternatives that are less carbon-intensive. Although placing a price on carbon results in increased prices for particular goods, the extra costs to businesses as well as individuals can become an extra revenue source that may be utilised in other useful means. Kennedy et al. (2015, p.3) assert that pricing carbon results in the advancement of low-carbon technologies, economic growth, as well as other activities, which may facilitate the response to climate. In Australia, the impact of climate change on human systems and the environment is many; for instance, in terrestrial and marine ecosystems, the life cycles and distribution of species is changing enormously; thus, negatively affecting the fisheries and ecosystem health. Besides that, climate change has led to reduced profitability and productivity in numerous agricultural industries and locations, but improvement as well as opportunities (Maani, 2013, p.2). Climate change sometimes results in major implications for the Australia’s economy, especially during cyclones and hailstorms. Between 1967 and 1999, the cost of disasters related to weather was approximately $942 million (Maani, 2013, p.2). More than 60% of the economic losses were attributed to attributable to cyclones and floods. Wicked problems such as carbon pricing have created the need for system thinking, which is a technique for envisioning the interrelationships that exist in a complex system. According to Mathews and Jones (2008, p.74), the use of Systems Thinking provides the problem solvers with a means of conceptualising the process of interdisciplinary. Therefore, a Systems Thinking is a valuable analytical tool, which may help problem solvers visualise the carbon pricing problem as a complex whole. As mentioned by Freeman and Tryfonas (2011, p.148) there is a growing need for sustainability, however, the progress is slow. Therfore, Systems Thinking approach is suitable for addressing a number of weaknesses related to the present policies on carbon pricing, which involves an understanding deeply the factors that contribute to climate change and how it can be changed at the individual level. The significance of Systems Thinking in developing solutions to a problem can be evidenced by Cotton Research and Development Corporation (CRDC). Evidently, the frequent and unstable climate change patterns have resulted in droughts, which pose a serious threat to Australia’s cotton industry. For this reason, CRDC saw the need to create a ‘systems map’ that was more holistic, wherein Australia cotton is currently grown. The systems map was created with the objective of helping in the identification of critical areas, wherein future R&D investments in farming systems would result in effectiveness as well as integration. To achieve systems map for the cotton industry, CRDC applied Systems Thinking to the problem before convening a two-day workshop. The objective of the workshop was to help in identification of possible critical areas where CRDC could place the future strategic investment in the future R&D investments in farming systems. The main challenge according to Maani (2013, p.38) was in decision-making and planning owing to the diverse views offered by the stakeholders. In the workshop, entities with different roles and views were involved. The included, consultants, cotton growers, representatives from Grains Research & Development Corporation as well as CRDC, R&D managers, researchers, marketers, and others. In the two-day workshop, the facilitators spent the first day enlightening the participants about the Systems Thinking and how beneficial it will be in managing change and complexity. The second day was interactive, wherein participants were divided into three groups before taken through several steps utilising the Systems Thinking aspects and tools. The activities involved finding the cotton farming system key drivers, establishing how the drivers’ interact and are connected in the in the cotton farming system, developing systems maps, and reviewing the systems maps. Besides that, the groups identified key leverage points in the developed systems maps as well as searching for R&D, which would facilitate with action at the leverage points. The three groups developed systems maps that were somehow different, but scores of elements in the three maps were common. Furthermore, the three groups’ lists of leverage points, as well as potential R&D, were combined. Evidently, Systems thinking allowed for new perspectives to be generated. Most of the participants noted that many of the identified leverage points exhibited aspects associated with the development of people’s ability and skills that could improve their management instead of direct management improvements of the crop system itself. It was established that System Thinking approach was a valuable and effective tool the climate change problem (Maani, 2013, p.39). More importantly, the Systems Thinking exhibited the effectiveness of developing strategic planning tools through active engagement and participation of the stakeholders. Basically, Systems Thinking enables the decision makers and problem solvers to understand the complex system through the examination of its component parts’ interrelationships instead of identifying the individual parts independently. According to Nguyen and Nguyen (2013, p.21), Systems Thinking has turned out to be more and more popular since it offers an innovative way of understanding and managing wicked/complex problems both at local and global context. Clearly, green gas emissions have resulted in uncertain climatic conditions with complex conditions. Nguyen and Nguyen (2013, p.21) assert that the systemic problems associated with such consequences on cannot be solved through technical solutions; instead they need a Systems Thinking. Systems approaches are the suitable way of solving the negative impacts brought about by climate change since the offer better adaptation options as well as mitigation strategies to climate change. As opined by Gilbert (2014, p.377), Systems Thinking is important in sustainable challenges because it helps in understanding the dynamics as well as structure of the complex problems facing mankind, such as change. For instance, an oil company can use Systems Thinking to reduce its carbon emissions and improve its environmental and safety quality. Conclusion With the focus on carbon, this essay has offered evidence proving that Systems Thinking is critical in developing solutions to sustainability challenges. As evidenced by the case study, the Systems Thinking approach is a useful tool for addressing different issues associated with sustainable development practice. Basically, carbon pricing is considered to be an effective way of mitigating climate change, but it is yet to become a complete solution. There is a need for climate and energy policies that can cover the actions required to cost-effectively reduce carbon emissions. Therefore, utilisation of the Systems Thinking appears to be the effective way of understanding the impacts of climate change. The use of Systems Thinking would enable policy makers, managers and scientists to offer effective mitigations as well as adaptation strategies toward a sustainable future. Therefore, Systems Thinking can be utilised to identify high-leverage interventions in climate change that could change the dynamics of carbon pricing. References Dellink, R.B., Jamet, S., Chateau, J. & Duval, R., 2014. Towards global carbon pricing: Direct and indirect linking of carbon markets. OECD Journal: Economic Studies, vol. 2013, no. 1, pp.209-34. Doda, B., 2014. How to price carbon in good times… and bad. Policy Brief. London : Grantham Research Institute. Freeman, R. & Tryfonas, T., 2011. Application of Systems Thinking to Energy Demand Reduction. In 6th International Conference on System of Systems Engineering (SoSE). New Mexico, US, 2011. IEEE. Gilbert, P., 2014. From reductionism to systems thinking: How the shipping sector can address sulphur regulation and tackle climate change. Marine Policy, vol. 43, pp.376–78. Hood, C., 2014. Managing interactions between carbon pricing and existing energy policies. Insights Paper. Paris: International Energy. Kennedy, K., Obeiter, M. & Kaufman, N., 2015. Putting A Price On Carbon: A Handbook For U.S. Policymakers. Working Paper. Washington, DC: World Resources Institute. Maani, K., 2013. Decision-making for climate change adaptation: A systems thinking approach. Synthesis and Integrative Research. St Lucia QLD: National Climate Change Adaptation Research Facility The University of Queensland. Mathews, L.G. & Jones, A., 2008. Using Systems Thinking to Improve Interdisciplinary Learning Outcomes: Reflections on a Pilot Study in Land Economics. Issues in Integrative Studies, no. 28, pp.73-104. Nguyen, Q.V. & Nguyen, N.C., 2013. Systems thinking methodology in researching the impacts of climate change on livestock industry. Journal of Vietnamese Environment, vol. 4, no. 1, pp.20-27. Weitzman, M.L., 2014. Can Negotiating a Uniform Carbon Price Help to Internalize the Global Warming Externality? Journal of the Association of Environmental and Resource Economists, vol. 1, no. 1/2, pp.29-49. Read More