An Evolutionary-Institutional Approach to Socio-Ecological Transformations: The Case of Lusatia

Socio-ecological transformations present regions with the challenge of moving away from established trajectories towards uncertain alternatives. This paper argues that the original institutional economics (OIE) tradition provides powerful yet underused tools for understanding these processes. It demonstrates that classical concepts such as the institutionalist conception of habits and institutions, ceremonial encapsulation, and path dependence remain analytically valuable, despite having been developed under different socio-historical conditions. Building on this foundation, the paper extends the concept of relatedness beyond its established technological meaning to encompass cognitive and institutional dimensions. This extended concept helps explain not only why existing trajectories persist but also which pathways actors are positioned to pursue, thereby clarifying the feasibility of transformation. These arguments are illustrated through the case study of the Lusatian coal region in Germany, drawing on semi-structured interviews with regional stakeholders. The analysis demonstrates how cognitive and institutional relatedness collectively shape the accessible space of transformation.