A critical evaluation of the capital theory approach to sustainable development

Abstract

It is argued that the capital-theory approach (CTA) does not adequately account for all the different elements of sustainable development. To overcome this problem, this paper attempts to point out what a more integrated and dynamic approach to sustainable development entails and what the consequences regarding policy-making of such an approach are. Neither the CTA nor an integrative, dynamic approach to sustainable development in itself provides an exclusive framework for approaching policy for sustainable development. The CTA provides useful, but static information for macroeconomic policy-makers on an aggregate scale of analysis. Integrative and dynamic approaches recognise the complexities of sustainable development at more disaggregated scales and take account of the importance of historical information. This approach is useful for prioritising political actions on more complex sources of unsustainability at lower scales of analysis.