A regulatory framework for a policy of sustainability: lessons from the neo-liberal school

In this paper, targets, institutions and policy measures for describing and implementing sustainable development are evaluated in terms of their confo rmity with the economic framework of a market system. From the viewpoint of neo-liberal economic thinking as conceived by the German Freiburg school o f economists, a general set of criteria is developed. It includes issues of operationalization and legitimation of goals as well as institutional and instrumental issues. On this basis, general rules for designing an ecologic al framework guaranteeing the greatest possible degree of conformity with a market system are derived. The concrete application of these rules leads t o recommendations for a policy of sustainability with respect to the settin g of goals, the establishment of institutions as well as the use of appropr iate instruments. (C) 1999 Elsevier Science B.V. All rights reserved.