Innovative value creation models for sustainable living

Abstract in Undetermined Current production and consumption are unsustainable. Traditional business models do not fully account for ecosystem services and social costs. Innovative value creation models (IVMs) that take into consideration environmental costs and social goals in addition to financial profit in which new modes of production, consumption and value creation are devised by new set of actors are needed. IVMs have not been researched systematically. This paper aims to 1) showcase IVMs supporting sustainable living; 2) discuss their environmental implications and role in fostering sustainability transitions. Theories applied are business model and social innovation, and socio-technical transitions. Case study approach is used to analyse IVMs in four consumption sectors: energy and housing, food and drink, mobility and consumer goods. Data is collected via meta-analysis of peer-reviewed articles, books, conference proceedings, reports and policies in online data bases. Data is analysed via in-depth case analysis of IVMs in four sectors, and cross-case comparison between the sectors. The paper discusses actor-network and institutional dynamics in IVMs and their environmental implications. It identifies patterns in the development of IVMs: shifts in producer-consumer dynamics, which have implications for resource flows in the society, and IVMs’ potential to reduce environmental impacts. It highlights the importance of ICT in IVMs’ proliferation and acknowledges the risk of rebound effects stemming from wicked problems associated with IVM implementation. Future research needs to focus on development of IVM classification, delineation of mechanisms and pathways to scale up the promising IVMs and the development of a sound methodology to measure environmental, social and economic effects of IVMs. (Less)