The emergence of sustainable industries: building on natural capital

• Published in: Strategic management journal Vol. 24; no. 4; pp. 317 - 331
• Main Author: Russo, Michael V.
• Format: Journal Article
• Language: English
• Published: Chichester, UK John Wiley & Sons, Ltd 01-04-2003; John Wiley and Sons; Wiley; Wiley Periodicals Inc
• Subjects: alternative energy; Alternative energy sources; Applied sciences; Capital; deregulation; Ecological sustainability; Economics; Electric power industry; electric utilities; Energy; Energy industry; Energy resources; Environmental stewardship; Exact sciences and technology; General aspects; Green businesses; Industry; institutions; Management; Natural capital; Natural energy; natural environment; Organizations; Rands; Renewable energy; Solar energy; Strategic management; Strategic planning; Studies; Sustainability; Sustainable agriculture; Sustainable economies; Sustainable food systems; Wind energy; Wind power; Workplace diversity; United States > US; California; institutions; alternative energy; deregulation; electric utilities; natural environment
• ISSN: 0143-2095; 1097-0266
• DOI: 10.1002/smj.298

This paper focuses on the emergence and growth of sustainable industries, specifically analyzing the rise of the wind energy industry in California. Based on a favorable institutional environment and the presence of abundant natural capital, the wind energy industry took root and flourished in California during the last two decades. This paper analyzes this phenomenon by exploring the determinants of where and when wind energy projects would be established. Findings suggest that in locations where natural, social, and economic influences converged, greater wind energy activity followed. The paper advances a simple framework that uses natural capital, site specificity, and institutional environments to predict which sustainable industries will enjoy growth in coming decades.