The digital sharing economy is commonly thought to promote sustainable consumption and improve material efficiency through better utilization of existing product stocks. However, the cost savings and convenience of using digital sharing platforms can ultimately stimulate additional demand for products and services. As a result, some or even all of the expected environmental benefits attributed to sharing could be offset, a phenomenon known as the rebound effect. Relying on a unique dataset covering over 750,000 food items shared in the United Kingdom through a free peer‐to‐peer food‐sharing platform, we use econometric modeling, geo‐spatial network analysis, and environmentally extended input–output analysis to quantify how much of the expected environmental benefits attributed to sharing are offset via rebound effects under seven re‐spending scenarios. We find that rebound effects can offset 59–94% of expected greenhouse gas (GHG) emission reduction, 20–81% of expected water depletion benefits, and 23–90% of land use benefit as platform users re‐spent the money saved from food sharing on other goods and services. Our results demonstrate that rebound effects could limit the potential to achieve meaningful reductions in environmental burdens through sharing, and highlight the importance of incorporating rebound effects in environmental assessments of the digital sharing economy.

This paper studies the environmental and social trade-offs of remanufacturing for product+service firms under competition. We use an analytical model and a behavioral study that together incorporate demand cannibalization from multiple customer segments across the competing firms’ product lines. We measure firms’ profits, consumer surpluses, environmental impacts, and environmental costs along the products lifecycles in the resultant equilibria with and without remanufacturing. We show that competition intensifies the tension between increased profit and worsened environmental impact from market expansions caused by remanufacturing identified by prior research in the case of monopoly. However, bringing in the social dimension leads to an overall positive assessment: remanufacturing creates additional consumer surplus, which compensates for the cost of the environmental impact. In other words, we found strong support that remanufacturing is beneficial for the society.