Sustainable development and institutional change: the role of altruistic behavior

Assuming that the environmental challenge will not be met without changing the present logic of the process of capital accumulation and its corresponding consumption patterns, the paper discusses how such a radical change could happen. The analytical model proposed by D. North to explain the historical process of institutional change that gave birth to the phenomenon of fast economic growth is used as a “backbone” to build an alternative model. Although making room for altruistic and/or irrational behavior, the North’s model rests on the (neoclassical) assumption that changes in relative prices (or the willingness to pay) play a role as an independent variable inducing institutional change. The paper argues, however, that uncertainty and scientific controversy prevents the ecological awareness aroused by environmental damages, and the corresponding changes in the willingness to pay, from playing such a role. Instead, the paper proposes an alternative model where an altruistic behavior – the solidarity towards future generations – plays the role as an independent variable. It discusses also what are the objective conditions that could make it possible for altruistic behavior to have such a role.