Economics of a Baltic Sea sustainability approach

Politics, economics and science interpret the concept of sustainability differently. The discussion distinguishes between economic, environmental and social sustainability. While advocates of economic sustainability assume that natural capital is substitutable by humanmade capital, policies for a sustainable development are questionable. The paper therefore highlights a regional case to show that sustainability is indivisible. Moreover, economics and policies serving Baltic sustainability need a new institutional network to manage the multispecies resource with participation of the social players and by addressing targets step by step. The findings are based on a simple ecological-economic model providing insights for the negotiation game for all players. In addition, multispecies resource management shows a strong hierarchy in both social actions and targets. Since sustainable development is an on-going, dynamic process, policy implementation and funding must also be continuous. Sustainable development therefore challenges the institutional sets for the process and its relations to local, regional and national policies.