4.6 Article

Path dependence and path break-out in the electricity sector

Journal

ENVIRONMENTAL INNOVATION AND SOCIETAL TRANSITIONS
Volume 43, Issue -, Pages 220-236

Publisher

ELSEVIER
DOI: 10.1016/j.eist.2022.03.010

Keywords

Path dependence; Self-reinforcing mechanisms; Path break-out; Industry decline; Energy transition; Incumbent utilities

Funding

  1. Strategic Research Council
  2. Academy of Finland (Smart Energy Transition project) [314325]
  3. Academy of Finland (AKA) [314325, 314325] Funding Source: Academy of Finland (AKA)

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Path dependence is a key mechanism that keeps socio-technical systems on their current development paths. This article advocates for a narrower conception of path dependence that focuses on self-reinforcing mechanisms. By reviewing literature on European electricity transitions, the authors identify two patterns of path break-out.
Path dependence is a key mechanism that holds socio-technical systems in their current development trajectories. In sustainability transitions research a broad conception of path dependence prevails, which covers a variety of historical barriers to transformation. We advocate for a more narrow conception of path dependence that focuses on the underlying self-reinforcing mechanisms. We introduce theoretical work from organisation studies into transition research to conceptualise path dependence at the level of socio-technical systems and organisations, and furthermore elaborate on the phenomenon of path break-out. Based on a literature review of European electricity transitions, we analyse how self-reinforcing mechanisms are weakening leading to path break-out. We identify two modes of path break-out. First, path dissolution is a result of exogenous shocks and unintentional weakening of self-reinforcing mechanisms. Second, path breaking is a result of an intentional attempt to change the exiting patterns, which weakens the self-reinforcing mechanisms.

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