Untapping the Green Growth Potential of the Sharing Economy
Besides the cost savings and the ability to create a “gig economy” from sharing, the sharing economy — services like Uber, Lyft, Airbnb etc. can lead to significant benefits to the environment. It makes intuitive sense, considering that much of what is being shared — everything from cars to rooms — can reduce ownership, and production.
But how green is the sharing economy actually and which services are the most effective in our quest for green growth?
Data suggests that transportation has the largest emissions reduction potential.
These CO2-equivalent (CO2e) emissions reductions are from reduced driving of private cars and reduced car production, not to mention the reduced impacts on local air pollution, noise and traffic congestion. Recently, a Dutch study was conducted to estimate the change in mobility as a result of car sharing, and the resultant CO2e emission reductions. The main conclusions of the study were:
- There is over 30% less car ownership among car sharers than before they began car sharing.
- Car sharers drive around 15% to 20% fewer car kilometres than before they started car sharing.
The reduced mileage and the reduced car usage means that car sharers emit between 175 and 265 fewer kg CO2 per person per year, than non-car sharers. Around half of this reduction is ascribed to less car use; the other half to the lower degree of car ownership.
The second sector in the sharing-economy with potentials for CO2e reductions is Accommodation
Private property accommodation through Airbnb and similar initiatives may lead to lower CO2e-emissions because these properties may generate lower emissions than hotels. It is also possible that Airbnb guests generate less water use and waste than hotel guests.
A study commissioned by Airbnb estimates a reduced energy use of at least 88% by their users compared to hotel guests. According to this study, Airbnb claims that, in a year, its guests in the Netherlands in 2017 achieved:
- Energy savings equivalent of 20,900 homes
- Water reduction equivalent of 330 Olympic-sized pools
- Greenhouse gas emissions equivalent of 60,400 cars
- Waste reduction of up to 3,000 tons.
One presumes that these savings are the result of foregoing hotels, which operate less efficiently than individual homes, but the full study which is available on this link is extremely high-level and insubstantial in describing its methodology.
Other than this flimsy study, it is hard to actually calculate how much emission reductions there are from accommodations, but theoretically, foregoing hotel use for Airbnb, there should be substantial savings.
The third way the sharing economy contributes to GHG emission reductions is by making Green Options Affordable
By monetizing the untapped potential of under-utilized goods, the sharing economy may prompt consumers to purchase more expensive products that are more durable and possibly eco-friendly as well. Sharing can be a massive impetus for adoption of electric cars or other expensive but green options. With car rental companies like Getaround offering rental for Tesla Model S for 20$ an hour, this electric car becomes affordable for many, and is also better-utilized. Making better use of under-utilized products is probably the most obvious, if vaguely quantified, environmental benefit of the sharing economy, and
Despite the lack of data, there is a clear opportunity for tapping the full environmental potential of sharing technology.
Its true that many green claims for the sharing economy are anecdotal or research may not be as comprehensive. However, the sharing economy is here to stay and certainly has potential to reduce not only GHG emissions but also reduce waste and improve efficiency in resource use. With businesses and startups going beyond sharing homes and cars to sharing meals through companies like EatWith, there is potential to reduce hunger and food waste, for example. Other peer-to-peer technologies may contribute to improved efficiencies and reduced wastage in surprising ways that may well prove far greener than imagined.
Globally, the world is taking note of the need to reduce waste alongside the efforts to mitigate GHG emissions. There is growing popularity for the “collaborative consumption” movement, which helps find more productive uses for underutilized assets, which will have not only a transformative effect on our wallets but on the environment.
There is a clear and obvious need for organizations focused on green growth to get involved in the gig and sharing economy, to help better integrate green practices in the sharing economy, and provide incentives for sharing initiatives that may contribute to higher consumer benefits, a more efficient economy and obvious environmental benefits.
