Competition policy, sustainability, and inclusive wealth

Eoin McLaughlin, Mirko Moro and Frans P. de Vries

No 2025-04, Accountancy, Economics, and Finance Working Papers from Heriot-Watt University, Department of Accountancy, Economics, and Finance

Abstract: The recent regulatory shift by competition and antitrust authorities—permitting limited industry collaboration on sustainability-related investments to better align markets with broader environmental and social objectives—signals a reconsideration of competition as a mechanism for advancing collective welfare. Drawing on Adam Smith’s Wealth of Nations and Theory of Moral Sentiments, this paper traces this evolution from a historical perspective and situates it within the established literature on sustainable development—most notably the principles of intergenerational justice and inclusive wealth. Collectively, these insights provide a framework for understanding how competition policy can be employed to assess and evaluate trade-offs inherent in societies’ broader welfare functions, including considerations of negative externalities and natural capital.

Keywords: Wealth of Nations; Justice; Investment collusion; Antitrust; Sustainable development (search for similar items in EconPapers)
JEL-codes: B21 D63 K21 L41 Q01 (search for similar items in EconPapers)
Date: 2025, Revised 2025
New Economics Papers: this item is included in nep-com, nep-env, nep-his, nep-law and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:hwuaef:320415

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