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A Regulatory Framework for a Policy of Sustainability: Lessons from the Neo-Liberal School

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  • Rennings, Klaus
  • Koschel, Henrike
  • Brockmann, Karl Ludwig
  • Kühn, Isabel

Abstract

In this paper targets, institutions and policy measures for describing and implementing sustainable development are evaluated in terms of their conformity with the economic framework of a market system. Firstly, from the viewpoint of neo-liberal economic thinking as conceived by the German Freiburg school of economists (Eucken), a general set of criteria is developed, including issues of operationalization and legitimation of goals as well as institutional and instrumental issues. On this basis general rules for designing an ecological framework guaranteeing the greatest possible degree of conformity with a market system are derived. The concrete application of these rules leads to recommendations for a policy of sustainability with respect to the setting of goals, the establishment of institutions (role of ecological councils, of a central environmental organization on UN level and of the GATT/WTO regime) as well as the use of appropriate instruments.

Suggested Citation

  • Rennings, Klaus & Koschel, Henrike & Brockmann, Karl Ludwig & Kühn, Isabel, 1997. "A Regulatory Framework for a Policy of Sustainability: Lessons from the Neo-Liberal School," ZEW Discussion Papers 97-13, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:7133
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    Cited by:

    1. Mao, Yihuan & Lin, Yan, 2024. "Do more hands make work easier? Public supervision and corporate green innovation," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 1064-1083.
    2. Rentz, O. & Wietschel, M. & Dreher, Martin & Bräuer, W. & Kühn, Isabel, 2001. "Neue umweltpolitische Instrumente im liberalisierten Strommarkt. Endbericht. BW-Plus Forschungsvorhaben BW V 99004 a+b," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 110494.
    3. Patricia S. Sánchez-Medina & Jack Corbett & Arcelia Toledo-López, 2011. "Environmental Innovation and Sustainability in Small Handicraft Businesses in Mexico," Sustainability, MDPI, vol. 3(7), pages 1-19, July.
    4. Rennings, Klaus, 1998. "Towards a Theory and Policy of Eco-Innovation - Neoclassical and (Co-)Evolutionary Perspectives," ZEW Discussion Papers 98-24, ZEW - Leibniz Centre for European Economic Research.
    5. Bizer, Kilian & Haverkamp, Katarzyna (ed.), 2012. "Nachhaltigkeit im Handwerk," Göttinger Handwerkswirtschaftliche Studien, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), volume 88, number 88.

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    More about this item

    Keywords

    sustainability targets; regulatory rules; neo-liberal framework; environment and international trade; environmental policy assessment;
    All these keywords.

    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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