"Institutions, Sustainability, and Natural Resources" is a scholarly book that examines the role of institutions in sustainable development and the sustainable management of forests. It argues that a new economic theory is necessary to guide humanity towards sustainability, rather than relying on outdated public policies. The authors, leading institutional economists, provide a systematic critique of neoclassical economic approaches and their limitations regarding sustainability. The book addresses various theoretical perspectives on suitable institutions for sustainable forestry, markets for environmental services, deforestation and specialization, as well as international experiences related to the Kyoto Protocol and biodiversity conservation. It integrates both old and new institutional economic theories and highlights the main features of post-Newtonian economics. This book is the second part of a series that focuses on the economics of sustainable forestry.