The sustainability paradox of the sharing economy

Abstract

The positive effects of new ‘sustainable’ business models, e. g. the sharing economy business model, are well-documented and widely acclaimed. However, these sustainable models also have unintended negative side-effects that are less visible and often ignored. In this article we describe these unintended side-effects as the sustainability paradox. We will discuss the negative externalities of sharing economy business models by comparing them to the characteristics of a sustainable economy model. Furthermore, we will propose a brief and simple checklist or framework for quick identification of sustainable business models. This framework can facilitate the top-down implementation of legislative measures and the bottom-up prevention of negative externalities of sharing economy initiatives.