Varieties of Capitalism and Sustainable Development: Institutional Complementarity Dynamics or Radical Change in the Hierarchy of Institutions?

Abstract:Sustainable development prospects are not substantially visible in the comparative analysis of models of capitalism. The concept of sustainable development does not appear in the initial theoretical framework of the “variety of capitalism” approach or in the “diversity of capitalism” approach. This article aims to contribute to current thinking about the interaction between the diversity of capitalism and sustainable development, based on the concepts of institutional complementarity and hierarchy, and to question the dynamics of various forms of capitalism in this perspective. The example of economic policies aimed at tackling global warming shows how each form of capitalism adopts measures that are compatible with its own unique configuration of complementary institutions, helping to make it “greener.” However, this trend fits into a dynamic of “limited sustainability” that does not challenge the finance-dominated institutional hierarchy or the current growth regime. The non-viability of our pr...