How Does the Efficiency of Value Realization on a Platform Influence Sustainability Transition

What is it about?

This paper applied a system dynamics method and proposed a framework for analyzing the relationship between EVR and the transition ratio. Findings suggest that improvements in the EVR lead to decreases in response time and may lead to an improved transition ratio. The ratio between EVR and the “entry rate” is important for predicting the transition ratio. However, preference, platform maturity, and the feedback of the transition ratio cause the effect of EVR to dynamically change. Based on this mechanism, the government can take incentive measures to maintain an acceptable transition ratio. For the power industry, the case simulated for this study, the transition can be improved by effectively transmitting a phasing-out policy for platforms and actors, and by guiding power exchange platforms to set reasonable rules, service levels, and growth rates.

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Photo by israel palacio on Unsplash

Photo by israel palacio on Unsplash

Why is it important?

The sustainability transition (ST), such as the transition from fossil energy power generation to renewable energy power generation, is an important topic for sustainable development. In the era of the digital economy, for platform-based actors making a transition from one business field harmful for the sustainable development of society to a new field, their efficiency in value realization (EVR) has become inseparable from the digital platform used. The relationship between EVR on a platform and business transitions is a topic that has not been fully discussed, especially from the perspective of the platform service system. Also, few studies have explored transaction costs and opportunity costs using queuing theory.