Abstract

PurposeTo examine political and economic institutional constraints that can facilitate or impede the implementation of sustainable development policies in urban areas.Design/methodology/approachA case study of Santa Monica, California is sued to examine the practical limitations of implementing sustainable development even under politically supportive conditions. The US experience is particularly instructive because it more clearly contrasts the differences between political, bureaucratic, and planning approaches to urban policy.FindingsThe analysis indicates policymakers must give more attention to the political and economic institutions that govern cities, particularly those that value individual choice, market economies, private property, and guarantees of civil liberties that encourage an open political process. Sustainable development in US cities has tended to emphasize centrally directed resource use. The analysis finds Santa Monica has fallen short of its sustainable development goals and progress has been uneven in large part due to the confounding influences of these alternative institutions.Practical implicationsThe successful application of sustainable development policies will require adopting a more open‐ended, market‐based, and dynamic approach.Originality/valueThis paper more clearly identifies the forces that determine the success or failure of sustainable development policies while outlining an approach that is more likely to reconcile conflicting tendencies in complex policy environments.

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