The Importance of a Sharing Economy
The overconsumption of resources by humans needs to be addressed if we are to solve environmental challenges such as climate change and biodiversity loss. We currently have about 8 billion humans on this planet and are using more resources then what the earth can replenish. At present humanity is annually consuming about two times the renewable resources then what the earth can generate within 1 year and this expected to become three times in 2050 if no action is taken. If everyone worldwide were to adopt the resource consumption of an average Canadian the planet would require the resources provided by 5 earths annually which is the highest in the G7. Canada is also the highest generator of municipal waste among 36 of the world’s richest countries producing 695.4 kg per person every year.
According to a United Nations press release “The global population, which is set to grow by 28 per cent, is predicted to use 71 per cent more resources per capita by 2050. Without urgent steps to increase efficiency, the global use of metals, biomass, minerals – such as sand – and other materials will increase from 85 to 186 billion tonnes per year by 2050.” This increase in consumption will make it impossible to deal with environmental challenges such as fighting climate change. The positive side from this UN news release is that “more sustainable use of materials and energy would not only cover the cost of keeping global warming below 2 degrees Celsius, but also add an extra $2 trillion to the global economy by 2050.”
Recent research has found that if we are to solve critical environmental problems such as climate change it is not enough to make consumption environmentally sustainable. Instead those consuming more than many need to reduce levels of consumption.
An old and well known approach to reduce consumption of resources and waste is sharing and the term “Sharing Economy” is one where sharing is maximized to reduce consumption of new products.
What is a Sharing Economy?
In a Sharing Economy products are shared between individuals and thus used more intensely rather than sitting idle. Digital platforms are used to arrange interactions between individuals who might not otherwise know each other. Individuals can rent, sell or donate products without any shop or bank by just using a digital platform. These digital sharing platforms foster a greater sense of community in cities and regions by bringing people who share common interests and goals together. In addition, data is collected for each interaction to improve future sharing interactions. The Sharing Economy approach is one way to decouple economic growth and the extraction of natural resources by making optimal use of existing products. The Sharing Economy approach means that access to a product is valued over ownership of that product and this is more cost-efficient for individuals as you are only paying for what you need. It also provides some income for those with idle resources.
Numerous internet sharing platforms exist for sharing goods and services such as accommodations (eg. Airbnb, HomeExchange), transportation (eg. Uber, Lyft), clothing and accessories (eg. Rent the Runway, Vince Unfold), leftover food (eg. OLIO, ToGoodToGo), parking spaces (eg. HonkMobile), and many other goods and services.
According to a report from Price Waterhouse Coopers entitled “The Sharing Economy” revenue from the top 5 sectors of the Sharing Economy is predicted to grow from $15 Billion USD in 2013 to $335 billion USD in 2025.
Research has shown that the Sharing Economy can contribute to achieving many of the UN’s Sustainable Development Goals such as fighting climate change, reducing inequalities, stimulating sustainable consumption and production practices as well as using sustainable energy.
AI and Sharing Platforms
Sharing platforms use Artificial Intelligence (AI) in order to help bring providers of goods or services and consumers together. Data collected by platforms from those who have used it can be used to help connect future providers and consumers. The approach to do this will improve over time as more data is collected by users of sharing platforms.
Sharing Economy Approach Example
Consider the example of Seoul, South Korea – a city that has declared its desire to turn itself into what it calls a “Sharing City”. The approach taken by Seoul emphasizes both local grassroots sharing initiatives to change the culture of city residents and also encourages global sharing economy initiatives such as Airbnb and Uber. Key policies adopted by Seoul include enacting an ordinance on promoting the Sharing Economy approach, designating over 60 organization as ones supporting the Sharing City initiative, providing funding and other public resources to support the Sharing Economy, adjusting laws and institutions such as those affecting transport, tourism, car parks, food, insurance and construction to support the Sharing City initiative, providing government incentives to administrators who succeed in best developing a sharing economy approach in their jurisdictions, and having training sessions and innovation hubs. In addition, over 60 sharing services have been created addressing sharing of vegetable gardens, cars, skills, public buildings, parking spaces, children’s clothing, toys and many other areas. These initiatives have resulted in residents widely accepting the sharing economy approach.
The Sharing City push in Seoul is designed to create new economic opportunities, build relationships between residents, and to reduce waste of resources with a view to resolving economic, social, and environmental problems.
Sharing in York Region / Sharing in Canada
In Canada the Sharing Economy is currently worth about $1.3 Billion and about 2.7 million Canadians aged 18 and older participated in the sharing economy in 2015-2016. This was primarily through digital sharing platforms such as airbnb and Uber.
In York Region – my place of residence – there are a number of options for residents to adopt the Sharing Economy approach. Several library’s in York Region act as a Lenderies – like a library where you sign out things rather than books. York Region Lenderies can be used to sign out camping equipment, party supplies, small kitchen appliances, sports equipment, tools, toys and games and yard/garden tools as well as other items. Using a Lendery means that you do not have to spend money or find space in your home to place new products. York Region also has a bicycle lending library at Markham Village Library where residents can borrow a bike and other bike-related accessories using a Markham Public Library card.
In addition, the region organizes Curbside Giveaway Days where residents are “invited to place unwanted items, labelled FREE, at the curb for other residents and community members to browse and take for their own use, free of charge.”
Next Steps
The online magazine Shareable – which describes itself as “an award-winning nonprofit media outlet, action network, and consultancy with a mission to empower communities to share” – has a list of 300 guides on its website to help individuals and communities on their journey towards a Sharing Economy. It can empower individuals to share more with concrete suggestions to help make this happen. Examples of guides include starting a tool or toy library, staging a clothes swap, organizing a Skillshare for those who have something to teach and others something to learn, sharing an eBook, organizing a ShareFest to introduce local sharing resources to residents and enabling residents to connect with each other in a way that enhances sharing. Taking up one or more of these sharing guides can help increase the level of sharing in your community and help bring about a Sharing Economy.
