Sharing Economy

September 13, 2016

NERC’s new Reuse Explorations Guide: Innovative Programs & Strategies is now available for free download. The Guide is a result of our two-year USDA funded Reuse Project. To promote the Guide I thought I’d share this excerpt on the sharing economy.

Sharing Economy or collaborative consumption is an economic model based on the reuse (sharing, swapping, trading, renting) of goods and services, thereby encouraging access to goods over ownership of goods. In a shared economy, items may be shared and/or rented among a group of users (e.g. Zip Car, Tool Banks). – Reuse Institute

According to the Institute for Sustainable Development and International Relations (IDDRI), a nonprofit policy research institute based in Paris), “shareable” goods—clothing, vehicles, furniture, telephones, televisions, toys, sporting goods, and home improvement and gardening tools—account for about a quarter of household expenditures and a third of household waste. 

Sharing, swapping, lending, or renting consumer products is obviously not a new concept. Through sharing, the optimal use of goods can be reached.  The sharing economy embraces all manner of sharing, from time to goods; it places emphasis on how we value goods, time, etc. For purposes of this guide we’ll focus on goods. When it comes to “the stuff” or goods we value or want, the questions are: How can they best be obtained and managed? And, what is required to obtain the goods? There are multiple options: money or currency; gifting; developing points to exchange for goods; renting or leasing; bartering; and/or, swapping. The sharing economy promotes refocused attention to access and experiences, instead of consumption and ownership.

The “digital revolution” has propelled the sharing economy to new heights. Technology and social media have become the new tools to promote the sharing and reusing of assets between individuals, associations, public entities, and private enterprises, with or without the exchange of money. Digital search, exchanges, and payments are conveniently made through mobile apps.

Using “peer-to-peer” and business-to-customer services to rent or share items is becoming increasingly popular around the world. Enterprises involved in the sharing economy usually have a rating or review system, promoting a more trusting environment for people on both sides of a transaction. The growing popularity of these services allows more and more people to rent or share items they do not need on a regular basis. Sharing platforms allow for a more secure environment, convenience, and availability of shared items, vehicles, lodging, or services at lower costs.

Shared mobility through car sharing or carpooling is typically associated with urban environments. Nonetheless, it presents opportunities for smaller communities as well, including college campuses, tourist areas, and even commuters, as vehicles in any size community often spend much of their time parked. The shared economy, in fact, can benefit all communities—rural, suburban, and urban, since no matter where we live many common items—vehicles, tools, equipment set idle for long periods of time.

By Athena Lee Bradley

ReuseConex 2016 is coming soon! October 17-19 in Boston. Don’t miss it!#ReuseRocks,  #ReuseRevolution,  #ReuseCircularEconomy, #ReuseRethinkRework