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Sustainable Business Core

ECO 615: Managing Regulation Compliance

Sustainability initiatives must be integrated with a complex set of government regulations. Regulation systems such as standards, tradeable permits, and taxes are analyzed from the firm’s point of view. Regulation systems are also studied when compliance costs are uncertain or changing over time. Many modern regulation systems allow firms to earn credits by over-complying, which can be sold or banked for future use. The course will study compliance/credit management, including over the business cycle and when regulation changes over time. The value of compliance/over-compliance to the firm’s brand and to society/external stakeholders is integrated into the optimal compliance decision.

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