Institutionalisation of sustainable consumption patterns based on shared use

Abstract

The product–service system (PSS) concept has been proposed as a way of dealing with unsustainable patterns of consumption in the business-to-consumer (B2C) domain. Existing alternatives to traditional consumption based on ownership, such as car sharing, communal washing centres and tool sharing schemes, indicate that more sustainable patterns of consumption may be found for other household functions. However, the low profile of these examples in society and on the market calls for a query into factors that may facilitate or hinder broader acceptance of more sustainable alternatives. In this study, the aforementioned examples are analysed from institutional and product–service system perspectives, and it is suggested that the embodiment of alternative consumption patterns into every day routines depends on institutional arrangements (regulatory and normative), on how the product–service systems are designed and applied in practice, and on the socio-cultural background of the society the systems are implemented in.

Introduction

The global market and the purchasing power of an increasingly wealthy population in industrialised countries are setting examples of consumption and lifestyles for the entire world. What is clear is that these patterns and levels of consumption are very energy- and resource-intensive. They create significant amounts of waste and lead to severe environmental problems. In order to combat associated environmental impacts, it is necessary to consider production- and consumption-related problems from a systems perspective. Until recently, consumption was considered as part of production and all the problems were to be solved by technological development (Dunlap and van Liere, 1984). Consequently, investments in improving environmental profiles of production processes and products are being made and some positive results achieved. However, it has been realised that technological innovation only partially addresses the problem and that increasing scale of consumption may considerably outweigh the resulting improvements of processes and products (Khazzoom, 1980). It seems, that although improving efficiency of products and processes makes environmental sense, it is not enough in order to combat the scale of problems we face. Special attention should be given to current consumption levels and patterns.

The issue of sustainable consumption has found its way into policy debates and documents for over a decade. We can see some positive changes in international and national policy documents that acknowledge the problem of consumption and discuss ways to address it through public information and awareness raising programmes, eco-labelling and public procurement. Beside policy initiatives, there are also examples of individuals or communities devising their own ways of consuming, which drastically reduce environmental impacts of households. Some initiatives experiment with substituting products with services by sharing and pooling material goods, or by leasing and renting them, aiming to increase the intensity of product use and thus reduce the material intensity of each use episode. Unfortunately, many of these grass-root attempts are temporary and inefficient from a customer and environmental point of view. Furthermore, we observe that although various environmentally sound alternatives exist, people are either not always aware of them or do not readily accept them. It is therefore apparent that even though the problem of consumption is being recognised to some extent, practical ways of addressing unsustainable patterns and levels of consumption have not yet found their way into daily routines. There are several reasons for this. First of all, our understanding of the forces shaping certain consumption patterns is still rather limited. Secondly, increasing consumption of material- and energy-intensive goods is seen as the primary way towards economic growth (Heilbroner, 1985) and ultimately, happiness. Therefore, for industries, it is unthinkable to consider other ways of satisfying customer needs than through material artefacts. Thirdly, environmental impacts of consumption are so diffuse that it is difficult to pinpoint a solution. Fourthly, actors who propagate more sustainable consumption (e.g. NGOs) lack decision-making power and need governmental support. Fifthly, consumption is distilled in society and touches each and every one of us. It is therefore not possible to separate consumption from other activities, because purchasing and consuming choices relate to almost any aspect of human behaviour. This implies that changing consumption patterns requires much more comprehensive change in society than changing production patterns and perhaps needs a longer time. The level of current understanding and the scale of required change suggest that consumption as a research field and as a target for policy is vital.

This research addresses the first problem—insufficient understanding of forces that affect consumption behaviour—by investigating critical factors that affect institutionalisation of existing alternatives to unsustainable patterns and levels of consumption. Consumption is ultimately a matter of individual or organisational choice, but purchasing decisions are bounded by existing institutional settings in society. Therefore, this paper develops a framework for analysis based on institutional and product–service system perspectives. The three areas in the business-to-consumer (B2C) markets—car sharing, washing services and collective use of power tools—are analysed.

The choice of the cases was determined by availability of data from primary research and by the richness of secondary sources. Primary sources of information include interviews with relevant stakeholders (e.g. interviews with Swedish car sharing cooperatives and European commercial rental and car-pooling companies). The data on washing services comes from interviews with stakeholders who manage communal washing centres in Sweden, including Electrolux, producer of washing machines for the centres, housing companies, which have facilities for the washing centres, and planning organisations, which plan new housing areas, including washing centres. The section on power tools is based on the survey of power tool rental companies, interviews with care takers in communities, managers of community-based tool sharing systems and producers of power tools, as well as on the survey of 618 households regarding ownership, use and renting of power tools. Secondary sources include literature sources on European car sharing organisations, historical facts and governmental policies and guidelines regarding household washing, results of a Swedish national survey of washing patterns in households.

The results of the study suggest that institutionalisation of alternative consumption practices depends on institutional settings, on how the alternative systems are developed and on socio-cultural context. The study intends to assist in further efforts of developing product–service systems in consumer markets.