What does sustainability demand? An institutionalist analysis with applications to China

Abstract In this paper we discuss if existing political and economic institutions can ensure sustainable futures. We do so by combining a global outlook with more specifically examining the situation in China. Present institutions foster growth, they are however weak at motivating actions that keep economies within an environmentally safe and socially just space. We especially note the challenges that strong focus on growth combined with ex post environmental regulations create for natural systems with tipping-points. In this situation, there is a need to change institutions to ensure strong emphasis on long-term sustainability as opposed to short term economic surplus. Regarding political decision-making, we discuss ways to break short-termism through strengthening public deliberation as well as formalizing political responsibility for the future. Regarding economic institutions, we emphasize the need to widen the goals of firms including responsibilities for environmental qualities. The latter may demand changes in ownership structures.