Evolutionary dynamics of the Green and Circular Economy

This chapter unfolds a history-friendly Freeman perspective to the greening of the economy, suggesting the last sixty–seventy years of cumulative greening has caused a deep structural adjustment of the global economy, a green techno-economic paradigm. Seven main stages in the greening of the economy are identified: (1) removal of waste and wastewater, (2) removal and dilution, (3) curative clean-up, (4) energy transition, (5) cleaner production, (6) green economy, and (7) circular economy. Through highlighting these stages, a more nuanced narrative of the greening of the economy is forwarded. Three defining positive tipping points are proposed: the greening of the economic process and innovation by turning companies’ eco-strategies from obstructive to proactive to green competitiveness (stages 5 and 6); a similar shift in science, technology and innovation (STI) policies (stage 6); and the recent change in direction from linear-eco-efficient to a circular green trajectory (stage 7). Moving into the circular future the rich green early mover economies depart from very different conditions (stages) than the less-developed green late-mover economies. The economics of hope especially for the less-developed green late-mover economies lies in the recognition of the dramatic positive green economic change that has happened and seizing the opportunities for leapfrogging into the circular economy.