Analysis of Factors Promoting the Umbrella Sharing Service: Evidence From a Choice Experiment

Abstract

Plastic pollution has been of attention around the world. Among plastic products, plastic umbrellas are difficult to recycle, and consequently, cause harm to marine life. To reduce the consumption of plastic umbrellas, a sharing economy is a promising solution. In Japan, the first umbrella-sharing service started in 2018. This service allows consumers to rent umbrellas and return them to any rental spots for reasonable costs. However, the diffusion of umbrella-sharing service is limited.

In this study, we conduct a choice experiment through an online survey to examine what elements promote umbrella-sharing service usage. We investigate whether respondents would choose the service, purchase an umbrella, or go home wet when faced with sudden rain. We also investigate the impact of information provision; we randomly provide the information on environmental issues and umbrella-sharing service in advance of the experiment. We collect data from 201 respondents and conduct regression analyses.

Our main finding is that if a respondent knew about an umbrella-sharing service before the experiment, they are 7％ more likely to use the service. Moreover, if a respondent receives information on both environmental issues and umbrella-sharing service, they are 6％ more likely to use the service. Finally, their willingness to pay for the service is estimated at around 471 yen.