Sustainability, innovation, and efficiency: A key relationship

This chapter aims to provide theoretical insights on the notion of sustainability and the relevance of its relationship with innovation and efficiency. The chapter looks at the neoclassical economics literature on sustainability and its relation to innovation. It also examines other theoretical approaches, focusing on the contributions of Partha Dasgupta because of his attention to the environment and the human condition and his evaluation of sustainability. Finally, the chapter discusses the policies for sustainability where innovation, natural capital, human capital, population, and institutions are fundamental factors.