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Comparative Energy, Environmental, and Economic Analysis of Traditional and E‐commerce DVD Rental Networks

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  • Deepak Sivaraman
  • Sergio Pacca
  • Kimberly Mueller
  • Jessica Lin

Abstract

This study is a comparative life‐cycle assessment (LCA) of two competing digital video disc (DVD) rental networks: the e‐commerce option, where the customer orders the movies online, and the traditional business option, where the customer goes to the rental store to rent a movie. The analytical framework proposed is for a customer living in the city of Ann Arbor, Michigan in the United States. The primary energy and environmental performance for both networks are presented using a multicriterion LCA. The package selected by the traditional network is responsible for 67% of the difference in total energy consumption of the two alternatives. Results show that the e‐commerce alternative consumed 33% less energy and emitted 40% less CO2 than the traditional option. A set of sensitivity analyses test the influence of distance traveled, transportation mode, and reuse of DVD and DVD packaging on the final results. The mode of transportation used by the customer in the traditional business model also affects global emissions and energy consumption. The customer walking to the store is by far the best option in the traditional network; however, the e‐commerce option performed comparatively better despite all transportation modes tested. A novel economic indicator, ESAL, is used to compare different transportation modes based on the level of stress exerted on the pavement. The two networks are compared on the basis of cost accounting; consistent with its energy and environmental advantages, the e‐commerce network also exerts lesser economic impact, by $1.17, for the functional unit tested.

Suggested Citation

  • Deepak Sivaraman & Sergio Pacca & Kimberly Mueller & Jessica Lin, 2007. "Comparative Energy, Environmental, and Economic Analysis of Traditional and E‐commerce DVD Rental Networks," Journal of Industrial Ecology, Yale University, vol. 11(3), pages 77-91, July.
  • Handle: RePEc:bla:inecol:v:11:y:2007:i:3:p:77-91
    DOI: 10.1162/jiec.2007.1240
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    Cited by:

    1. Kim, Yeonsu & Kang, Jisoo & Chun, Hyunbae, 2022. "Is online shopping packaging waste a threat to the environment?," Economics Letters, Elsevier, vol. 214(C).
    2. Siragusa, Chiara & Mangiaracina, Riccardo & Tumino, Angela, 2020. "Environmental sustainability in B2C e-commerce: The impact of multiitem shopping," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Data Science in Maritime and City Logistics: Data-driven Solutions for Logistics and Sustainability. Proceedings of the Hamburg International Conferen, volume 30, pages 71-95, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Liao, Wenjie & Heijungs, Reinout & Huppes, Gjalt, 2012. "Thermodynamic analysis of human–environment systems: A review focused on industrial ecology," Ecological Modelling, Elsevier, vol. 228(C), pages 76-88.
    4. Jinqian Deng & Huiling Chi & Tiantian Zhang, 2024. "Effects of Entrepreneurial Activities on Rural Revitalization: Based on Dissipative Structure Theory," Agriculture, MDPI, vol. 14(9), pages 1-22, August.
    5. Koide, R. & Murakami, S. & Nansai, K., 2022. "Prioritising low-risk and high-potential circular economy strategies for decarbonisation: A meta-analysis on consumer-oriented product-service systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    6. Susanne Feichtinger & Manfred Gronalt, 2021. "The Environmental Impact of Transport Activities for Online and In-Store Shopping: A Systematic Literature Review to Identify Relevant Factors for Quantitative Assessments," Sustainability, MDPI, vol. 13(5), pages 1-23, March.
    7. Santos, Georgina & Behrendt, Hannah & Teytelboym, Alexander, 2010. "Part II: Policy instruments for sustainable road transport," Research in Transportation Economics, Elsevier, vol. 28(1), pages 46-91.
    8. Yan Yu & Wenjie Hu & Chunyu Dong & Xiao Gu & Bojan Obrenovic, 2023. "E-Commerce Development and Green Technology Innovation: Impact Mechanism and the Spatial Spillover Effect," Sustainability, MDPI, vol. 15(17), pages 1-21, August.

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