Shaping sustainable markets—A conceptual framework illustrated by the case of biogas in Sweden

Abstract

By merging findings from transition studies with recent literature on market-shaping, this paper outlines a conceptual framework that describes the shaping of sustainable markets. The framework comprises three critical processes: enabling exchange practices, proving the system and constructing the narrative. Individually, these processes generate different kinds of value – traded, demonstrated and expected value – and the value output from each process serves as input to the other two processes. Hence the value streams link the processes together. We illustrate the framework by analyzing market-shaping processes for biogas in Sweden. The case analysis shows how public and private actors have engaged in a multitude of activities that have built up the market-shaping processes. The analysis highlights the recursive nature of sustainable market-shaping, showing how key actors must repeatedly respond to tensions resulting from growth and aspirations of growth.