Abstract
A future-oriented and sustainable Leasing Society is based on a combination of new and innovative serviceoriented business models, changed product and material ownership structures, increased and improved eco-design efforts, and reverse logistic structures. Together these elements have the potential to change the relationship between producers and consumers, and thereby create a new incentive structure in the economy regarding the use and re-use of resources. While the consumer in a leasing society buys a service (instead of a product), the producer in a leasing society retains the ownership of the product (instead of selling it) and sells the service of using the product. This creates producer incentives to re-use, remanufacture, and recycle products and materials and could become a cornerstone of the circular economy, depending on how the leasing society is implemented. While a predominantly positive picture of the success of a leasing society model and related business cases emerges from the bigger part of the available literature, this paper argues that the resource efficiency of respective business cases is highly dependent on the specific business case design. This paper develops a more cautious and differentiated definition of the leasing society by discussing relevant mechanisms and success factors of leasing society business cases. The leasing society is discussed from a micro business-oriented and a macro environment-oriented perspective complemented by a discussion of conditions for successful business models that reduce environmental impacts and resource footprints.
Highlights
Facing the globally ever-increasing consumption of natural resources and the increasing generation of waste, the prevention of waste in the first place has been identified as a key strategy for an increased efficiency of resource use
Discussion of trends The selected case studies present anecdotal evidence that specific leasing society business models have the potential to increase resource efficiency and improve the firm’s competitive position. They clearly highlight that waste prevention needs integrated approaches that go beyond technology-dominated end-of-pipe infrastructures, including production and consumption patterns
A circular economy aims at overcoming the division between waste production and waste treatment
Summary
Facing the globally ever-increasing consumption of natural resources and the increasing generation of waste, the prevention of waste in the first place has been identified as a key strategy for an increased efficiency of resource use. In the case of a conventional leasing business model (2nd example referring to a use-oriented PSS) that is based on certain contract arrangements (like agreements regarding regularly maintenance), still requires the production of a washing machine, but the producer is responsible for additional services, like the installation and repair of the machine. A direct producer-customer relationship has some advantage instead of interposing a third party: Another point concerns the incentives for the producer to design and run its products more resource efficient Those incentives are only true for those constellations, where the original equipment manufacturer offers the PSS. Discussion of trends The selected case studies present anecdotal evidence that specific leasing society business models have the potential to increase resource efficiency and improve the firm’s competitive position They clearly highlight that waste prevention needs integrated approaches that go beyond technology-dominated end-of-pipe infrastructures, including production and consumption patterns. Business, civil society, policy-makers and scientists should be consulted for improving a shared understand of possible opportunities and risks connected to the leasing society
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