Pushing the envelope: market mechanisms for sustainable community development

Abstract

This paper introduces market mechanisms for sustainable community development, an interdependent planning and implementation framework encompassing strategic directions, strategies, actors and instruments for municipal policy making. It examines how the economy influences the unsustainable development of local jurisdictions and how a coherent typology of strategies, actors and policy levers can move communities toward complementary environmental, social and economic outcomes. The paper illustrates a dichotomy between municipal decision making and embraces economic, social and environmental criteria for development of the built environment. It defines sustainable community development and analyzes research findings from senior decision makers in government, academic institutions, industry and non-profits. After critiquing ‘the market mechanism’ and identifying preferred approaches, the authors propose a typology that systematically aligns market signals with implementing sustainable community development policies.