Reconciling sustainability and growth: Criteria, indicators, policies

Sustainable development is based on the integration of four dimensions: the economic, the environmental, the social and the institutional. For the economic dimension in particular, growth has been considered an essential element of sustainable development. This paper discusses the relationship of social, environmental and institutional sustainability objectives to economic growth and derives social and environmental criteria for growth to be sustainable. One of the most sophisticated sustainability studies developed for Germany is introduced, demonstrating the need and the possibility to reconcile economic, social, environmental and institutional objectives. Integrated politics taking into account all four dimensions when drafting policy plans are a necessary precondition for this behalf. Based on two sustainability scenarios with a different emphasis (growth, integration) five core action zones for policy making are identified. The criteria derived can be used as yardsticks assessing policy proposals at an early stage regarding their impact on key sustainability objectives. Copyright (C) 2004 John Wiley & Sons, Ltd and ERP Environment.