An institutional/evolutionary framework of economic change

This chapter provides an institutional/evolutionary framework of economic change which is based on the dynamics of socio-technical (ST) systems. The functioning of these systems is coordinated by the coevolution of institutional, technological and economic constituents and is made possible by adaptive agency. The issue of power is centre stage of the framework: dominant ST systems are actively reproduced and adapted by core-actors and generate pervasive lock-ins; new ST systems emerge as a result of the cumulative empowerment of coalitions of actors for change. An institutional/evolutionary approach to environmental policy can be based on the proposed framework.