What is Economic Sustainability?

Abstract

It is argued in this paper that sustainability is not a major concern of contemporary economic theory even though the roots of the concept dig deep into the development literature and into nineteenth century Classical economics (sections 1 and 2). Contemporary Neo-Classical economic theory is built upon utilitarian ethics and is not at all communitarian except to the extent that an economic theory of community can be built upon an utilitarian ethics (section 3). Contrary to what some NeoClassical economists argue, it is possible to give a relatively precise definition of sustainable economic development. What has not been established yet is whether all alleged properties of sustainable economic development are non-contradictory. In other words, the economic growth literature has not provided us with an ideal model of sustainable development yet even though the latter's main characteristics are economic (section 4). Non-economists have great difficulty in accepting some of the economic methodology when applied to sustainability. The fault lies not in the economic methodology itself but rather in the assertion—made by some economists—that sustainability is only an economic problem (section S and 6). Economic-ecological sustainability should be the central and pragmatic concern for public policy even though it will necessarily have social implications. Widening sustainability to social and moral concerns can only hasten its demise as a practical ideology (section 7).