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Schumpeterian economic dynamics of greening: propagation of green eco-platforms

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  • John A. Mathews

    (Macquarie University)

Abstract

The greening of business is now widely recognized as firms take the lead from reluctant governments in making sustainable operations profitable. The greening of business may be contrasted with the “business of greening” – in the sense that greening may be associated with the emergence of smart green platforms that propagate and expand as they creatively destroy industries that are rooted in a fossil fuelled past. Such considerations bring into focus the evolutionary economic dynamics of greening, involving business concepts like emergence of platforms and networks, the capture of increasing returns, the role of manufacturing, mass production and learning curves, which help to account for green innovation and green growth as drivers of the global green shift. This is a perspective that is distinguished from “zero growth” and “natural capitalism” approaches to greening; and it is one that is as applicable as much to China and emerging industrial powers as to advanced industrial countries. Fundamentally, greening is characterized as the emergence of green business platforms which create new possibilities for green growth as they propagate, driven by supply-side dynamics as much as by demand-side dynamics involving changed consumer behavior, as in the rise of the sharing economy. Fundamentally it is cost reduction (via learning curves) and capture of increasing returns that open up opportunities for new business strategies that creatively destroy the old business models associated with fossil fuels and resource wastage.

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  • John A. Mathews, 2020. "Schumpeterian economic dynamics of greening: propagation of green eco-platforms," Journal of Evolutionary Economics, Springer, vol. 30(4), pages 929-948, September.
    • Handle: RePEc:spr:joevec:v:30:y:2020:i:4:d:10.1007_s00191-020-00669-5
    DOI: 10.1007/s00191-020-00669-5
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    References listed on IDEAS

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    Cited by:

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    2. Simone Sehnem & Adriane A. Farias S. L. de Queiroz & Susana Carla Farias Pereira & Gabriel dos Santos Correia & Edson Kuzma, 2022. "Circular economy and innovation: A look from the perspective of organizational capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 236-250, January.
    3. Nathalia Suchek & Cristina I. Fernandes & Sascha Kraus & Matthias Filser & Helena Sjögrén, 2021. "Innovation and the circular economy: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 3686-3702, December.
    4. John Mathews & Elizabeth Thurbon & Sung-Young Kim & Hao Tan, 2023. "Gone with the wind: how state power and industrial policy in the offshore wind power sector are blowing away the obstacles to East Asia’s green energy transition," Review of Evolutionary Political Economy, Springer, vol. 4(1), pages 27-48, April.

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