System Design for Sharing Business

Abstract

This paper discusses system design methods for sharing businesses towards a circular economy (CE). While sharing can contribute to reducing environmental burdens by intensifying product utilization, rebound or backfire effects may increase such environmental burdens. The paper introduces the concept of a circular ecosystem and emphasizes the importance of proactive evaluation and design considering consumer behaviors. Furthermore, we present two case studies – one on durable goods sharing businesses using multi-agent simulation, and another on a bike-sharing business applying scenario design, highlighting the effectiveness of policy interventions and business strategies and the need for segment-specific strategies. Finally, we identify future research challenges that need to be addressed to advance the social implementation of system design for sharing businesses.