The economic theory of production conceals opportunities for sustainability improvement

Koskela, LJ and Tommelein, ID 2009, The economic theory of production conceals opportunities for sustainability improvement , in: 17th Annual Conference of the International Group for Lean Construction, 15th-17th July 2009, National Pingtung University of Science and Technology, LCI-Taiwan and LCI-Asia, The Grand Hotel, Taipei, Taiwan.

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In analyses of action options regarding sustainability, the economic theory of production is often used as a conceptual starting point. We contend that this theory is deficient, even counterproductive. Especially, we argue that effective options exist for sustainability improvement that are not visible in this theory, and thus will not be taken into consideration when comparing alternative options based on it. We argue that the fundamental problem of the economic theory of production is that it cannot explain the formation of either cost or value in an adequate way. This situation seems to have been caused by the foci and assumptions of the “marginalist turn” of economics, starting from 1870, especially the denial to consider any internal organization of production other than that caused by prices and costs, the assumption of optimal efficiency, and the assumption of ends as given. The shortcomings of the economic theory of production are demonstrated through a case study on plasterboard (also known as drywall) installation. We show how practices for installation of these products, as advocated in lean construction, would not have been suggested or visible in a “sustainability” analysis based on economic theory.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Theory of production, economics, sustainability, lean production, waste, plasterboard, drywall, installation
Themes: Subjects / Themes > T Technology > TH Building construction
Subjects / Themes > T Technology > TS Manufactures > TS155-194 Production management. Operations management
Built and Human Environment
Subjects outside of the University Themes
Schools: Schools > School of the Built Environment
Schools > School of the Built Environment > Centre for Urban Processes, Resilient Infrastructures & Sustainable Environments (UPRISE)
Journal or Publication Title: Proceedings of the 17th Annual Conference of the International Group for Lean Construction
Refereed: Yes
Depositing User: LJ Koskela
Date Deposited: 12 Aug 2010 12:25
Last Modified: 25 Jan 2018 01:53
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