Innovations For A Sustainable Economy: A Multi-Dimensional Framework For System Transition In The Post-Pandemic Era
DOI:
https://doi.org/10.64252/0sxtvp67Keywords:
Sustainable Economy, Innovation, Circular Economy, Doughnut Economics, ESG, Green Technology, System Transition, Geopolitical Risk, Trade Policy, Energy Security, Supply Chain Resilience.Abstract
The intensifying climate crisis, exhaustion of various natural resources, and the desire for social equality put forward an argument in favor of a swift transformation from a linear, extractive type of capitalist economy to one that sustains and regenerates resources. The transition, accelerated and reshaped by the post-COVID-19 world and with new geopolitical developments, including the Russia-Ukraine war, Iran-Israel situation, Gaza-Palestine crisis, and US trade policy uncertainties, across the horizon, is not a matter of just incremental efficiency improvement but is something system-wide to be intervened through disruptive innovation unleashed around technology, business models, and finance.
We provide a complete toolkit for analyzing innovations through the lenses of three interconnected pillars: 1) Technological Enablers, 2) New Economic Paradigms, and 3) Financial and Governance Mechanisms. We analyze case studies and trends, beginning with developments in and after 2022, such as the US Inflation Reduction Act, reciprocal tariff policies, the EU Green Deal, the Carbon Border Adjustment Mechanism, the Reserve Bank of India's framework regarding green deposits, and outcomes of COP28, which demonstrates the acceleration of policy ambition amidst the great puzzle of geopolitical fragmentation.
The paper concludes with a discussion on how integrating all these pillars remains paramount for decoupling. On the other hand, the current geopolitical tensions have given rise to a complex web of trade uncertainties, supply chain vulnerabilities, and energy security concerns that hinder certain components of the sustainable transition, while accelerating others. The transformation would have succeeded if these challenges had been met with adaptive international cooperation, resilient supply chains, and a profound shift in social values toward equity and sufficiency during the existing period of global turmoil.
