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This article explores the pros and cons for reducing working hours in Europe. To arrive to an informed judgment we review critically the theoretical and empirical literature, mostly from economics, concerning the relation between working hours on the one hand, and productivity, employment, quality of life, and the environment, on the other. We adopt a binary economics distinction between capital and labor productiveness, and are concerned with how working hours may be reduced without harming the earning capacity of workers. There are reasons to believe that reducing working hours may absorb some unemployment, especially in the short-run, even if less than what is advocated by proponents of the proposal. Further, there may well be strong benefits for the quality of peoples‘ lives. Environmental benefits are likely but depend crucially on complementary policies or social conditions that will ensure that the time liberated will not be directed to resource-intensive or environmentally harmful consumption. It is questionable whether reduced working hours are sustainable in the long-term given resource limits and climate change. We conclude that while the results of reducing working hours are uncertain, this may be a risk worth taking, especially as an interim measure that may relieve unemployment while other necessary structural changes are instituted.

This article explores the complex relationship between environmental regulation, innovation, and sustainable development within the context of an increasingly globalizing economy. The economic development, environment, and employment aspects of sustainable development are emphasized. We contend that the most crucial problem in achieving sustainability is lock-in or path dependency due to (1) the failure to envision, design, and implement policies that achieve co-optimization, or the mutually reinforcing, of social goals, and (2) entrenched economic and political interests that gain from the present system and advancement of its current trends. The article argues that industrial policy, environmental law and policy, and trade initiatives must be ‘opened up’ by expanding the practice of multi-purpose policy design, and that these policies must be integrated as well. Sustainable development requires stimulating revolutionary technological innovation through environmental, health, safety, economic, and labor market regulation. Greater support for these changes must also be reinforced by ‘opening up the participatory and political space’ to enable new voices to contribute to integrated thinking and solutions.