The co-evolution of business models and public policies in transitions - A system dynamics perspective

Abstract

The role of the construction and building sector as parts of national metabolism is prominent in national sustainability agendas. Growing building stocks require continuous input of concrete, containing natural resources, such as gravel and cement. The output of construction demolition waste and excavation materials constitutes a major material flow that is either recovered or disposed. This study simulates the dynamic interactions between the gravel sector and its governing public policies. We find that public policies and business strategies co-evolve towards lock-ins, creating barriers in the mineral construction material industry towards sustainable production and consumption practices. We find that the low-price elasticity of mineral construction materials requires nation-wide policy interventions to reduce the demand for land and improve material efficiency. Thereby, a significant contribution to SDG 11 and SDG 12 is possible.