674808

research-article2016
EDQXXX10.1177/0891242416674808Economic Development QuarterlyHammer and Pivo

Research and Practice

Economic Development Quarterly

The Triple Bottom Line and Sustainable

1–12
© The Author(s) 2016
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DOI: 10.1177/0891242416674808

and Practice edq.sagepub.com

Janet Hammer1 and Gary Pivo2

Abstract
The triple bottom line refers to economic, environmental, and social value of an investment and is related to the concept of sustainable
development. The triple bottom line is increasingly salient to economic development related disciplines, yet the topic has received
little attention within the field of economic development. This study offers three substantive responses to that gap. First, triple
bottom line economic development is introduced and defined. Second, research regarding whether and how practitioners prioritize
and engage in triple bottom line economic development is presented. Third, implications for the field are considered, including the
centrality of the concept to economic development and recommendations to advance theory and practice in this regard.

Keywords
sustainability, economic development theory, community development, state and local ED policy, sustainable economic
development, sustainable development

Overview Triple bottom line thinking is informed by and relates to

the concept of sustainable development—the premise that
The triple bottom line (TBL) refers to the social, environ- development should occur in ways that meet the needs of cur-
mental, and economic value of an investment. The concept is rent generations while maintaining conditions and opportuni-
increasingly salient to economic development related fields ties for future generations to do the same (World Commission
such as business, finance, planning, and real estate. Aspects on Environment and Development, 1987). Inherent in the
of the TBL concept are addressed in economic development definition of sustainable development are concepts of envi-
literature; however, a clear definition of TBL economic ronmental stewardship and inter- and intragenerational equity.
development is lacking. Furthermore, little research has been Efforts to define and address sustainability were born from
conducted regarding how economic development profes- the recognition that existing development patterns cannot
sionals view and practice the concept. This study addresses proceed without jeopardizing the environmental systems nec-
those gaps, paving the way for more productive engagement essary to sustain life and economies, and that significant dis-
with an important and timely topic. The study begins with an parity within and between generations is neither sustainable,
introduction to the TBL concept, defines TBL economic ethical, nor in tune with development goals.
development, explores TBL economic development in prac- Triple bottom line and sustainability concepts have gained
tice, and concludes with a consideration of implications to traction in fields related to economic development including
theory and practice. business, planning, finance, and real estate. This is evidenced
by the growing number of journals, books, professional orga-
The Triple Bottom Line Concept nizations, certifications, and conferences addressing sustain-
ability in related topics such as impact investing, responsible
The triple bottom line term was coined in the 1990s by busi- property investment, and corporate responsibility.1 As dis-
ness consultant John Elkington to describe economic, envi- cussed below, aspects of the TBL are addressed in economic
ronmental, and social value of investment that may accrue
outside a firm’s financial bottom line (Elkington, 2004). The 1
Portland State University, Portland, OR, USA
TBL approach aims to more accurately value assets and lever- 2
University of Arizona, Tucson, AZ, USA
age resources, so that capital is employed as efficiently and
Corresponding Author:
effectively as possible. The concept is sometimes referred to Janet Hammer, College of Urban and Public Affairs, Portland State
as the 3Ps (people, planet, profit), triple value adding (Roberts University, Portland, OR 97207-0751, USA.
& Cohen, 2002), and blended value (Emerson, 2003). Email: [email protected]

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