Impact of the Sharing Economy on Sustainable Development in Asia: Case of Japan

Authors: Eugene Kornov, Master’s degree student, Basic Department of Institute of China and Contemporary Asia of the Russian Academy of Sciences, Faculty of World Economy and International Affairs, HSE University

Sophie Klimova, Master’s degree student, Basic Department of Institute of China and Contemporary Asia of the Russian Academy of Sciences, Faculty of World Economy and International Affairs, HSE University

Source: Unsplash

The sharing economy, also known as collaborative consumption or access-based consumption, has emerged as a transformative force in both developed and emerging economies. In Asia, particularly in Japan, the sharing economy has grown significantly in the last decade, offering novel solutions to challenges related to sustainability, urbanization, and demographic change. This paper investigates the impact of the sharing economy on sustainable development in Japan between 2016 and 2024, with an emphasis on environmental, economic, and social dimensions of sustainability.

Japan presents a unique context for studying the sharing economy due to its advanced infrastructure, aging population, urban density, and strong environmental consciousness. The country has seen a surge in sharing platforms ranging from mobility services like car sharing (e.g., Times Car Plus) to space sharing (e.g., Airbnb Japan), labor platforms, and peer-to-peer goods exchange systems. Understanding how these platforms contribute to or hinder sustainable development in Japan can offer valuable insights for policymakers and other Asian countries undergoing similar structural transitions. The timeframe 2016–2024 captures both the post-sharing boom and the impact of the COVID-19 pandemic on collaborative consumption.

The sharing economy is often linked to sustainability through its potential to optimize resource use, reduce waste, and promote access over ownership (Heinrichs, 2013). However, the actual sustainability outcomes are mixed and context-dependent (Frenken & Schor, 2017). In the Asian context, Cheng (2016) highlighted that cultural values, regulatory frameworks, and technological readiness heavily influence the adoption and impact of sharing platforms.

In Japan, studies have examined the rise of sharing platforms in urban centers and their role in reducing carbon emissions, especially in transport (Yamada & Otsuka, 2020). Murata and Nakajima (2019) found that space sharing contributes to more efficient use of underutilized properties, potentially supporting environmental and economic sustainability. Yet, critics argue that these platforms can exacerbate inequality, reduce job security, and lead to over-tourism, as seen in Kyoto and Tokyo with unregulated home-sharing services (Inoue & Yamada, 2021).

Moreover, the COVID-19 pandemic severely disrupted sharing services, prompting both platform innovation and regulatory scrutiny (Taishin et al., 2022). This period, however, also saw a renewed emphasis on community-based and local sharing initiatives, suggesting a shift from globalized models to more resilient, decentralized forms of economic exchange.

Using a qualitative case study approach with a focus on Japan between 2016 and 2024, this analytics combines document analysis, policy review, and secondary data from government sources, sharing economy platforms, and academic literature. It should be also mentioned three pillars of sustainable development: environmental, economic, and social. The selected cases include car-sharing services (e.g., Times Mobility), home-sharing (Airbnb), and local peer-to-peer platforms (e.g., AnyTimes and Coconala).

The sharing economy in Japan has contributed to modest environmental gains, particularly in urban mobility. Car-sharing services have reduced the need for private car ownership among younger consumers, leading to lower emissions and congestion (Wang, et al., 2024). Similarly, space-sharing platforms have encouraged efficient use of underutilized properties, reducing land and resource pressure. However, rebound effects such as increased consumption due to convenience have also been observed.

Economically, sharing platforms have created flexible income opportunities and reduced barriers to market entry. Platforms like Coconala have allowed freelancers to monetize skills without formal employment. Nevertheless, the rise of the gig economy has also intensified concerns around labor rights, taxation, and platform monopolies (Nakamura et al., 2021). The Japanese government’s attempts to regulate platforms reflect ongoing tensions between innovation and equity.

The impact on social sustainability is nuanced. On one hand, the sharing economy has promoted social cohesion through local initiatives and elderly-focused services such as ridesharing and task assistance. On the other hand, large platforms have disrupted communities, particularly in tourist-heavy regions where home-sharing has altered neighborhood dynamics and inflated housing costs (Taishin et al., 2022).

The pandemic catalyzed a shift toward more locally oriented, trust-based platforms, with communities organizing mutual aid through digital tools. This trend may signal a more sustainable evolution of sharing practices rooted in Japan’s communal traditions.

Thus, the sharing economy in Japan between 2016 and 2024 has had a complex but generally positive impact on sustainable development. While environmental and economic benefits are evident in specific sectors, social challenges and regulatory gaps persist. The Japanese case illustrates the need for balanced governance that nurtures innovation while ensuring equity and long-term sustainability. As Asia continues to urbanize and digitize, Japan’s experience offers valuable lessons on how to harness the sharing economy for sustainable futures.

References:

1. Cheng, M. (2016). Sharing economy: A review and agenda for future research. International Journal of Hospitality Management, 57, 60–70. https://doi.org/10.1016/j.ijhm.2016.06.003
2. Frenken, K., & Schor, J. (2017). Putting the sharing economy into perspective. Environmental Innovation and Societal Transitions, 23, 3–10. https://doi.org/10.1016/j.eist.2017.01.003
3. Heinrichs, H. (2013). Sharing economy: A potential new pathway to sustainability. GAIA - Ecological Perspectives for Science and Society, 22(4), 228–231. https://doi.org/10.14512/gaia.22.4.5
4. Taishin, N., Naohiro K., Akinori M., Hsiang-Chuan C. (2022). Analyzing the Potential of the Sharing Economy in a Post-COVID World, Urban and Regional Planning Review, Vol. 9, P. 167-184. https://doi.org/10.14398/urpr.9.167
5. Nakamura, H., Abe, N., & Mizunoya, T. (2021). Factors inhibiting the use of sharing economy services in Japan. Journal of Cleaner Production, 278, 123981. doi:10.1016/j.jclepro.2020.123981 
6. Wang, Y., Zhu, Y., Wei, C., Jiang, M., & Yamamoto, T. (2024). Carsharing Worldwide: Case Studies on Carsharing Development in China, Europe, Japan, and the United States. Sustainability, 16(10), 3994. https://doi.org/10.3390/su16103994