Is the Sharing Economy Green? Evidence from Cross-Country Data

Using cross-sectional data from 165 countries, this study takes a fresh look at whether or not the sharing economy is a green solution for countries. This study relies on the Timbro sharing economy index and uses both carbon emission and environmental performance index as proxies for the greenhouse gas effect and overall environment, respectively. Due to limited sample size and non-normal distribution of the sample, this paper applies the Bayesian regression model, which is based on posterior distribution. The findings suggest the following: (1) a high sharing economy level has a negative relationship to carbon emissions but a positive relationship to overall environmental performance; (2) the joint variables show that a high sharing economy level together with high broadband access, urbanization, and high education level reduces carbon emissions; and (3) for manufacturing countries, a high sharing economy level together with high urbanization is associated with comparatively low carbon emissions and high environmental performance. In general, these findings allow us to conclude in favor of the contribution made by a high sharing economy level to sustainability.