The objective of this paper is to understand and study sustainable product development using a systems approach. This paper focuses on the development of the “Factor X” model to study diffusion of eco-innovation strategies. The concept of “Factor X” is qualitatively similar to the concepts of eco-efficiency and dematerialization with an added quantitative edge. It focuses on reducing the environmental impact of economic activities in quantitative terms such as reducing environmental impacts by a factor of 4 or factor of 10, etc. In the real world, artifacts interact with each other to form a web structure (known as artifact system (AS)), which has its own laws of evolution. We have implemented the “Factor X” framework through an adaptive agent based simulation (AABS) model to study the implications of different AS scenarios (achieved by setting system defining parameters) on the propagation and extent of diffusion of eco-innovation strategies.

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