Assessing car-sharing as a circular economy strategy: the case of Taiwan

Abstract

Proponents of sustainable mobility often endorse car-sharing because it provides opportunities for circular economic strategies while preserving ownership and minimizing resource use. Influenced by consumer willingness, car-sharing services can provide equivalent transportation with fewer vehicles, reduce raw material procurement, and lower industry reliance on certain nonrenewable resources. However, interindustry linkages in upstream supply chains can cause demand shifts, potentially decreasing the economic benefits for raw material-related industries. This study aims to develop a methodology that combines linear programming and a computable general equilibrium model to assess how consumer behavior affects the potential of car-sharing to replace private car usage in densely populated cities such as those in Taiwan and how the resultant potential influences the repercussion effect across industries. The analysis examines tradeoffs between value-added, resource demand, and efficiency in various sectors, highlighting the decoupling of economic growth from resource consumption. The findings underscore the challenge of promoting resource efficiency through car-sharing, indicating sector-specific variations in the value-added per unit of resource use. This information can aid decision-makers in formulating strategies for adopting product-service systems to advance sustainable consumption and production.