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Rethinking Economic Foundations for Sustainable Development: A Comprehensive Assessment of Six Economic Paradigms Against the SDGs

Author

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  • Emily Ghosh

    (Stockholm Environment Institute–U.S. Center, Somerville, MA 02144, USA)

  • Leonie J. Pearson

    (Centre for Environmental Governance, University of Canberra, Bruce, ACT 2617, Australia
    Stockholm Environment Institute–Asia Center, Bangkok 10330, Thailand)

Abstract

Progress toward achieving the Sustainable Development Goals (SDGs) has been disappointingly slow, raising fundamental questions about whether our dominant economic framework can deliver sustainable development outcomes. This research systematically evaluates six economic paradigms—Neoclassical Welfare Economics, Green Growth, Degrowth, Agrowth, Steady State Economics, and Doughnut Economics—against all 17 SDGs to determine which might better support sustainability transformations. Using a rigorous mixed-methods approach, we first characterize each paradigm according to key attributes, then assess their alignment with SDG objectives using a four-point scoring system. Our analysis reveals that the dominant Neoclassical Welfare Economics paradigm shows the weakest alignment with the SDGs, while alternative frameworks demonstrate significantly stronger alignment: Degrowth, Steady State Economics, Doughnut Economics, Green Growth, and Agrowth. No single paradigm fully addresses all dimensions of sustainable development, with most showing notable weaknesses in people-centered SDGs. Each paradigm demonstrates distinct complementary strengths: Green Growth in technological innovation, Degrowth in redistribution mechanisms, Steady State Economics in resource boundaries, Agrowth in redefining welfare, and Doughnut Economics in balancing social foundations with ecological ceilings. We conclude that selective integration of complementary elements from multiple paradigms offers the most promising pathway forward and propose four specific recommendations: (1) developing integrated assessment frameworks, (2) establishing experimental policy zones, (3) reforming economics education, and (4) creating context-specific transition pathways. This research provides the first comprehensive evaluation of how alternative economic paradigms align with the full spectrum of SDGs, offering crucial guidance for policymakers seeking more effective approaches to sustainable development.

Suggested Citation

  • Emily Ghosh & Leonie J. Pearson, 2025. "Rethinking Economic Foundations for Sustainable Development: A Comprehensive Assessment of Six Economic Paradigms Against the SDGs," Sustainability, MDPI, vol. 17(10), pages 1-23, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4567-:d:1657538
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