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Environmental Impacts and Potential of the Sharing Nordic Council of Ministers the sharing economy of impacts and potential 2017:554 Environmental TemaNord Nordens Hus Ved Stranden 18 DK-1061 Copenhagen K www.norden.org ENVIRONMENTAL IMPACTS AND POTENTIAL OF THE SHARING ECONOMY ENVIRONMENTAL IMPACTS The various sharing initiatives seen in the Nordic countries over the last years within transportation, housing/accommodation, sharing/renting of smaller capital goods and personal services could yield considerable benefits AND POTENTIAL OF for consumers due to better quality and/or lower prices of the services. They also have a potential for emissions reductions of CO2 and local pollutants. However, savings from lower prices could lead to increased emissions from THE SHARING ECONOMY increased demand of the services (particularly transport) and increased spending on other goods and services. Depending on how consumers spend their savings, these changes could partly, wholly or more than offset the initial emission reductions. The impacts on overall CO2 emissions depend on whether the emissions are taxed, part of the emissions trading system EU ETS or not regulated at all. Environmental impacts and potential of the sharing economy John Magne Skjelvik, Anne Maren Erlandsen and Oscar Haavardsholm TemaNord 2017:554 Environmental impacts and potential of the sharing economy John Magne Skjelvik, Anne Maren Erlandsen and Oscar Haavardsholm ISBN 978-92-893-5156-0 (PRINT) ISBN 978-92-893-5157-7 (PDF) ISBN 978-92-893-5158-4 (EPUB) http://dx.doi.org/10.6027/TN2017-554 TemaNord 2017:554 ISSN 0908-6692 Standard: PDF/UA-1 ISO 14289-1 © Nordic Council of Ministers 2017 Cover photo: unsplash.com Print: Rosendahls Printed in Denmark Although the Nordic Council of Ministers funded this publication, the contents do not necessarily reflect its views, policies or recommendations. Nordic co-operation Nordic co-operation is one of the world’s most extensive forms of regional collaboration, involving Denmark, Finland, Iceland, Norway, Sweden, the Faroe Islands, Greenland, and Åland. Nordic co-operation has firm traditions in politics, the economy, and culture. It plays an important role in European and international collaboration, and aims at creating a strong Nordic community in a strong Europe. Nordic co-operation seeks to safeguard Nordic and regional interests and principles in the global community. Shared Nordic values help the region solidify its position as one of the world’s most innovative and competitive. Contents Preface ..................................................................................................................................... 5 Executive Summary ...................................................................................................................7 A digital platform, spare resources and persons are properties recognising the sharing economy ...................................................................................................................7 1. Introduction ...................................................................................................................... 13 1.1 The sharing economy and the environment ............................................................. 13 1.2 Our analysis ............................................................................................................14 1.3 Content and outline of the report ............................................................................14 2. The properties of the sharing economy .............................................................................. 17 2.1 Introduction ............................................................................................................ 17 2.2 What is the sharing economy? ................................................................................. 17 3. Nordic sharing economy initiatives ....................................................................................... 33 3.1 The Norwegian study .............................................................................................. 33 3.2 The sharing economy in the Nordic countries ......................................................... 34 3.3 Car and transportation of people ............................................................................. 37 3.4 Transportation of goods ......................................................................................... 40 3.5 Housing and property .............................................................................................41 3.6 Services ................................................................................................................. 44 3.7 Other ..................................................................................................................... 46 4. Some numerical illustrations of emission reduction potentials ........................................... 47 4.1 Transportation ........................................................................................................ 47 4.2 Housing/accommodation ........................................................................................ 57 4.3 Smaller capital goods ............................................................................................. 62 4.4 Services ................................................................................................................. 65 5. Overall environmental and policy implications ................................................................... 67 5.1 Several sharing initiatives have a potential to contribute to environmental improvements ........................................................................................................ 67 5.2 Sharing initiatives’ impacts on overall emissions depend on the environmental policy instruments used ................................................................................................... 68 5.3 Sharing initiatives should be encouraged, and all emissions should be priced or regulated ............................................................................................................... 69 References .............................................................................................................................. 71 Sammendrag........................................................................................................................... 73 En digital plattform, underutnyttede ressurser og personer kjennetegner delingsøkonomien .................................................................................................. 73 Preface The concept of a “sharing economy” has recently emerged to give name to digital platforms for the exchange of services. It is often claimed that the sharing economy have, or might lead to, significant environmental benefits in the form of increased resource efficiency and reductions in environmental burdens. However, not much solid research has so far been done on this, theoretical or empirical. This report gives an overview of some current sharing economy initiatives in the Nordic countries, analyses the change in consumer behavior that these initiatives could lead to, and assess what environmental impacts these changes might imply. It seems from the report that it is not evident that the sharing economy always lead to environmental improvements. Sometimes it is necessary to encourage sharing initiatives, and introduce supporting regulatory measures in order to achieve environmental benefits. The report was funded by the Environment and Economy Group (MEG) and Sustainable Consumption and Production Group (HKP) under the Nordic Council of Ministers and prepared by Vista Analyse. August 2017 Signe Krarup Chairman of the Working Group on Environment and Economy under the Nordic Council of Ministers Executive Summary A digital platform, spare resources and persons are properties recognising the sharing economy The concept of “sharing economy” is rather new, and there is no uniform definition as to what it comprises or how comprehensive the various sharing economy initiatives are. In our view the sharing economy initiatives could be defined as to fulfil the following three criteria: The transaction should cover a service based on goods or competence. Transactions of owner rights are not included. A digital platform (app) is a vital part of the service, as an intermediate between buyer and seller, and/or as part of the quality of the service. The initiative is established to carry out the service in the first bullet with the help of the technology of the second bullet. These criteria are pragmatic, but seek to comprise what is the core of the sharing economy. Within it are the initiatives offering transactions between persons/consumers (C2C) and between businesses and persons (B2C), as well as business to business initiatives (B2B). The criteria cover the best known initiatives like Uber, Airbnb and similar. Several firms from the “old” economy are developing digital platforms to meet the competition from the sharing economy activities, for instance offering of various streaming services. We have not included them in our survey since we would like to focus on the new initiatives that offer different solutions than traditional firms. Our analysis covers four areas Our attempt has been to give an overview of some current sharing economy initiatives in the Nordic countries, analyze the change in consumer behavior that these initiatives could lead to, and to assess what environmental impacts these changes
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