From Introduction:

In this chapter I will argue that although Iceland has the potential of being a role model when it comes to sustainability there is a tension in domestic politics between the vision to lead by positive example and the temptation to use the smallness as an excuse to act as a free rider. Elements of both approaches can be found when the concept of sustainability is explored in the Icelandic context. (...)

In my effort to explore if Iceland can be considered a role model, offering some lessons for the wider world, I will give a broad overview of key issues related to sustainability and sustainable development in the country. Given the vastness of the topic, I will not try to cover every aspect of sustainability in Iceland, but rather draw out some of the issues that make Iceland unique when it comes to sustainable development. After giving a general overview of the political economy of the country, and how recent political and economic developments can be viewed in the light of sustainability, I will focus on the key sectors that receive the most attention in domestic discourses about sustainability. Given Iceland’s reliance on natural resources it should not come as a surprise that the focus is not so much on industrial production, but rather on the direct exploitation of natural resources such as fishing and the harnessing of renewable energy. The rapidly growing tourism sector also deserves some attention, given the crucial role nature plays in tourism in Iceland. The section on key sectors is followed by a discussion about corporate social responsibility in the private sector as well as some thoughts about consumers and citizens’ awareness. The final section will revisit the original question of Iceland as a role model or free rider and offer some observation from the preceding analysis.