Is the construction sector sustainable? Definitions and reflections

The paper reflects on the analysis of the UK construction industry in the Pearce Report of 2003. It outlines the economist's approach to sustainability, which, to date, has been mainly applied at the national economy level. That approach rests on the perception that human well-being is determined by wealth, or assets. Wealth needs to be interpreted broadly and reference is made to the growing literature that measures the asset base of a nation. The paper asks how far the asset-based approach can be applied to the sectoral level of an industry. While sustainability, and sustainable development, have broadly been assumed to be 'good things', the paper raises some challenges to an unquestioning belief in the notions of sustainability as guides to policy. By and large, however, using the asset-based approach is seen to provide real insights into the functioning of the construction sector and its broader role in social and economic development.