Reuse of consumer products: Climate account and rebound effects potential

Abstract

The circular economy aims to enhance resource efficiency and mitigate environmental pressures, while contributing to innovation and growth. However, its actual effectiveness in reducing environmental impacts has come under scrutiny. This study evaluates the environmental benefits of reuse as a circular economy activity, using a municipal reuse program as case study. The analysis includes a detailed characterization of donated products, a comprehensive carbon footprint assessment, and an estimation of rebound effects caused by imperfect substitution and income changes. Findings reveal that the environmental impact of operating municipal reuse programs is relatively modest (0.28 kg CO₂e per kg of reused goods), while potential emissions savings can be significant (average 3.9 kg CO₂e per kg of reused goods). However, rebound effects pose a substantial challenge, driven by imperfect substitution and income-driven re-spending behaviors. Estimated rebound effects spanned 82–167 % for furniture products. Re-spending, in particular, risks negating the environmental benefits of reuse or even causing net negative outcomes. The rebound analysis pointed to green consumption and product eco-design policies as foundational elements to limit environmental impacts, but also to the importance of considering the social benefit contribution of reuse. This study underscores that while reuse and other circular economy activities hold promise, they are not inherently free of environmental impacts and can yield adverse effects. Incorporating user behavior and social dimensions is therefore essential for the effective assessment and strategic design of circular economy policies and initiatives.