Showing posts with label Industry and Business. Show all posts
Showing posts with label Industry and Business. Show all posts

Wednesday, March 6, 2013

Industry & Business

Explore the Mind Map to learn about the sustainable use of ICT in Industry & Business!

Ever since the development of ICT industry and business have been major application areas for these technologies. Their distribution brought significant changes for these sectors by revolutionizing production and trading methods. Information and communication networks offer channels for the exchange of business data, for cooperation and distribution, whereas computer systems enable optimization of a broad range of industrial and business processes, resulting in efficiency gains in energy and resource usage. Whether ICT can contribute to reduce carbon emissions arising from industry and business is discussed in this section. Given that the focus of industry and business is always set on economic growth, it is a great issue of sustainability to align this economic objective with the currently urgent environmental and social aspects on the way to a low carbon society. Therefore it is necessary to find methods of sustainable growth, meaning “to preserve the same outputs, in terms of functionality to people, with less resource use”, for which developments in technology can account.

Industrial Motor Systems

In many industrial processes electrical energy is transformed into mechanical power to drive machines, pumps or belt conveyors [1]. Also compressed air, fan and pumping systems include motor systems, in total accounting for about 60 percent of energy consumption in manufacturing processes [2]. The manufacturing sector is growing, together with energy demand, especially in countries where wages and resources are inexpensive compared to welfare states. Most of the needed energy still is generated from fossil fuels, which leads to increasing greenhouse gas emissions as well. It is estimated that industrial motor systems will account for 7 percent of global carbon emissions by 2020 [1]. Exclusively considering China, this number can be assumed to be 10 percent [3].

There is a classification scheme for motor systems based on energy efficiency, which was established by the European Commission and the CEMEP , ranging from EFF1 (high efficiency) over EFF2 (medium efficiency) to EFF3 (low efficiency) [4]. Sales figures show that in 2005 only 4 percent of purchased motor systems were classified EFF1, while the major part of motors sold was EFF2 (87%) [5]. By now the classification scheme has been changed to new international efficiency (IE) classes, where IE1 stands for standard efficiency (consistent with EFF2), IE2 stands for high efficiency (consistent with EFF1) and IE3 stands for premium efficiency [4]. Due to technological progress the low efficiency class EFF3 is not considered anymore.

As in vehicles, optimized engineered and controlled motor systems can provide energy and emissions savings as well as long-term cost reductions in production processes. Such motor systems are controlled and optimized by microelectronics. Basically there are three different possibilities to improve the energy efficiency of motor systems:
  • Replacement of existing motor systems by high efficiency systems: The potential for improvements by using motor systems of the highest efficiency classification grade is estimated at 10 percent [5]. 
  • Equipment of motor systems with electronic rotation speed control: Such motor systems are called variable speed drives (VSD) [1] and are controlled and optimized by microelectronics, to adjust rotation speed and power consumption to match the required level. This minimizes energy losses due to over-sized motor power. It is assumed that electronic speed control could account for efficiency improvements of 30 percent [5]. 
  • Optimization of mechanics: Improvements in gears, belts, bearings and lubricants can significantly increase decrease friction and losses and therefore increase energy efficiency. The improvement potential is estimated at 60 percent [5]. 

The role of ICT in the optimization of motor systems is to enable improvements by electronic rotation speed control, accounting for significant efficiency gains. In this context the main principle of optimization is to apply highly efficient frequency converters, as it is necessary to convert the electricity from energy grids to make it applicable to motor systems [5]. The conversion of electricity is always accompanied by energy losses of a certain extent, which can be optimized by microelectronics. Another possibility to improve energy efficiency is to use frequency inverters, which convert direct current (DC) to alternating current (AC) and can there- fore minimize energy losses in acceleration and breaking applications, due to the adjustment of frequency to rotation speed [5]. It is assumed that the efficiency of industrial motor systems can be increased by 30 percent, considering all of the existing options. If this technology is applied at 60 percent of industrial motors this would lead to global savings of 0.68 GtCO2e in 2020 [1].

References

[1] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.

[2] United Nations Industrial Development Organisation (UNIDO). Motor systems efficiency
supply curves, December 2010.


[3] G. Philipson. Ict’s role in the low carbon economy. Technical report, Australian Information Industry Association (AIIA), 2010.

[4] European Committee of Manufacturers of Electrical Machines and Power Electronics (CEMEP). New efficiency classes for low-voltage three-phase motors (IE-Code). http://www.cemep.org/index.php?id=53. Accessed: 2013-03-06.

[5] Bio Intelligence Service. Impacts of information and communication technologies on energy efficiency, final  report. ftp://ftp.cordis.europa.eu/pub/fp7/ict/docs/sustainable-growth/ict4ee-final-report_en.pdf, September 2008. Accessed: 2013-02-12.


 

Automation and Optimization of Industrial and Business Processes

In today’s industry there are several processes regarding to the production of goods, which are supported by computer systems. In this context four application areas of ICT support of indus- trial and business processes can be differentiated [1]:
  • Product Lifecycle Management (PLM): The whole life-cycle of a product, from design to disposal is managed computer-aided. 
  • Customer Relationship Management (CRM): ICT provided advanced possibilities to identify business markets and improve customer communication and service. 
  • Supply Chain Management (SCM): Logistics systems allowing optimization of acquisition, inventory management and delivery by increased information exchange between and within companies. 
  • Enterprise Resource Planning (ERP): ICT systems integrate business data on several internal and external corporate activities and processes to provide a single application to manage all business areas. 

Some of the most energy and resource intense industrial processes are part of the several steps of a product’s life-cycle, from the extraction of raw materials and resources to the disposal of the product. Figure 1 depicts this life-cycle. The first step of production usually is the extraction of raw materials, needed for the production of product components and base materials, which is a process with direct impact on the environment. The extent of this impact depends on the intensity of resource usage in production. After the production of base materials and the assembling and production of the final product, the product has to be packaged and transported to the end-user, where it fulfills its actual purpose during the in-use period. The last stages of a product’s life-cycle after usage, are determined by re-use, recycling or landfilling or incineration. It has to be highlighted that a product causes environmental pollution in every step of the life-cycle, basically in form of energy consumption and emissions. The types of emissions range from greenhouse gas emissions, over dust and noise emissions to waste emissions.


Figure 1: The product life-cycle and its impact on the environment [2]

By considering the environmental impacts of the different life-cycle stages it gets apparent, that methods and tools for Product Life-Cycle Management (PLM) provided by ICT enable environmentally conscious product design and production processes. There are different tools for separated application areas within Product Life-Cycle Management, like Product and Portfolio Management (PPM), Digital Product Development (DPD), Manufacturing Planning Management (MPM) and Product Data Management (PDM) [1]. A research project and awareness raising campaign on behalf of the European Commission came to the conclusion that “80% of a product’s environmental impact is determined in the design phase” [2]. This finding confirms the relevance of product design methods aiming at efficiency and sustainability. Therefore environmental considerations have to be taken into account at the design stage of a product, to determine the processes of the whole life-cycle in a way to conform to economical as well as ecological requirements. This approach is called EcoDesign [2].
There are several computer-aided technologies for Digital Product Development. These automation tools represent the basis of computer-aided production methods [1]:
• Computer-aided design (CAD) is a term for the design of physical objects or processes supported by computer systems. CAD systems are commonly used for on-screen development of physical products or buildings.
• Computer-aided manufacturing (CAM) is the use of computers and software tools to manufacture physical products and prototypes, which where engineered with CAD support.
• Computer simulation (CS) provides functionalities to generate computational models of real life products, processes and systems. Computer simulations enable fast and flexible verification of design concepts with low intensity of resource use. CS is a method of dematerialization since it substitutes physical testing systems.
• Computer-aided engineering (CAE) is a general term for analysis, design, planning, manufacturing and simulation tools based on computer systems. By the possibilities of simulation CAE provides functionalities for validation and optimization of products and processes. Therefore CAE tools also act as decision support systems for engineerings in planning and design.

The extent of the environmental benefits by Digital Product Development is hard to determine. Regarding to energy consumption, computer-aided tools definitely enable higher efficiency and savings. These savings arise from process optimization, reducing the effort in production and the needed input of resources to a minimum. Some of the automation tools like computer simulation tools provide all benefits of dematerialization, reducing the demand for energy and physical materials.

Beside the computer automated design of products, production processes are supported by information technology as well. A prominent term in the context of ICT applied in industrial production is process automation. The use of computer systems enables efficiency gains in several steps of production. For example, there are multi functional production machines, which are controlled by computers, an approach called computerized numerical control (CNC), as well as computers controlling movements between production stations, creating flexible manufacturing systems (FMS) [3].

Another example of process automation, which is related to production in the context of procurement, can be found in logistics, more precisely in supply chain management. The management of the supply chain is a business process containing a series of activities, linking vendors, service providers and customers [4]. The development of e-commerce brought fundamental changes in the structure of the supply chain and the flow of information and goods. The processes within todays supply chains are automated to a large extent. Automatic re-orders of raw and production materials result in smaller stocks, enabled by just-in-time delivery for example [5]. The reason for automation are information and communication systems providing efficient methods to exchange information within the whole supply chain, between customers and suppliers. This improves cooperation and therefore optimizes the transportation of goods, for example by improved coordination of transport routes and loading. The term describing such systems for information exchange is interorganisational information systems (IOIS) [4]. It is the possibility to share information, in order to match demand and supply, that enables companies to improve production and distribution planning. There is several research work done on the impact of ICT on improving supply chain management, which shows that ICT can be considered as key enabler in this context [4]. The information that is shared within organizations and within the whole supply chain contains several issues, ranging from demand forecast, over levels of inventory and raw materials, to plans of delivery, sales and production. The shared knowledge about the status and plans of several trade partners provides economical advantages, as well as a positive environmental impact due to lower energy utilization.

All kinds of process automation are generally developed to reach time and cost efficiency gains and therefore primarily serve for economical purposes. This optimization is realized on the basis of information and data about industrial processes, which also contains information that is relevant for sustainability. Energy and resource use can be monitored for each single process, which means that potential improvements can be identified. In this context economical and environmental interests do not conflict, as energy savings have positive impact on aspects. The potential emissions savings by automation of industrial processes are estimated by 0.29 GtCO2e in 2020 [6]. This number is based on the assumption that energy consumption in industrial processes can be decreased by 15 percent, due to a 33 percent penetration of process optimization technology.

References

[1] Bio Intelligence Service. Impacts of information and communication technologies on energy efficiency, final  report. ftp://ftp.cordis.europa.eu/pub/fp7/ict/docs/sustainable-growth/ict4ee-final-report_en.pdf, September 2008. Accessed: 2013-02-12.

[2] Fraunhofer Institute for Reliability and Microintegration IZM – Department Environmental Engineering. 1:    Introduction to EcoDesign – What is  it all about? http://www.ecodesignarc.info/servlet/is/810/, 2005. Accessed: 2013-03-06.

[3] M.A.R.M. Salih. Climate change and sustainable development: new challenges for poverty reduction. Edward Elgar, 2009.

[4] M. Kollberg and H. Dreyer. Exploring the impact of ict on integration in supply chain control: A research model, 2006.

[5] B. Cushman-Roisin. Environmental impacts of e-commerce. http://engineering.dartmouth.edu/~d30345d/courses/engs171/eCommerce.pdf, 2011. Accessed: 2013-03-06.

[6] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008. 

 

Dematerialization by E-Products and E-Services

When it comes to emissions savings in business and industry, a significant role of ICT is achieving dematerialization, which is characterized by replacing physical high-carbon products by virtual equivalents [1]. This concept was issued before related to the transport, as well as to the buildings sector as a consequence of using ICT in these areas. In this context, concepts like videoconferencing and telecommuting where discussed. In industry, dematerialization is represented by the reduction of resource use, including raw materials and energy, at every stage of the product life-cycle. This leads to emissions and resource savings in production, reductions “of energy and material inputs” while utilization, “and of wastes at the disposal stage” [2].
When physical products are replaced by non-material substitutes the effect on resource use is obvious. This case is an example of absolute dematerialization. On the other hand there is also relative dematerialization, which is characterized by reduced material and energy usage “per unit of economic value produced” [2]. An example of relative dematerialization is a declining consumption of energy or raw-materials per Gross Domestic Product (GDP), which is a measure of the value of all produced products of a country within a defined time period [3]. In other words, this means producing the same value with less resources needed.
So, beside the replacement of physical goods by virtual substitutes and reductions in the usage of large physical systems or infrastructures (e.g. videoconferencing instead of traveling to meetings), dematerialization also means producing less energy and material intense products. Such products are still physical, but may be lighter or smaller, or are manufactured in a more efficient way [2].
Dematerialization is often mentioned in the context of e-commerce. Trading via electronic networks allows processing business data electronically and enables to sell virtual products. There are several examples of dematerializing products, services and processes in commerce, like e-ticketing, e-banking, e-books or digital music [2].

E-ticketing is an approach to replace paper tickets by electronic tickets. It can be applied to all kinds of tickets or reservations for events, as well as tickets for public transport or flights. E-tickets, which are completely electronic, have to be distinguished from online tickets, that are purchased via the Internet and printed by the customer. The concept of e-ticketing usually differs from traditional tickets: Customers register online to an event or a flight and get access to the service by confirming their identity locally. The advantages that e-tickets provide to users are an increased safety not to lose tickets, as well as faster access to tickets, without having to visit ticket shops physically. Threats of e-ticketing systems are the possibility of system failures and user errors, as well as ticket fraud. Due to electronic distribution ticket agencies experience higher efficiency in order processing. A main application area of e-ticketing is the airline industry. A survey by the International Air Transport Association (IATA) reported that in 2007 88 percent of global passengers purchased electronic tickets instead of paper tickets [2]. Airline companies realize costs reductions by selling electronic tickets, which enables them to offer tickets at lower prices. The price reduction is accompanied by increased demand for airline tickets, which also means increased emissions from airplanes. This rebound endangers potential environmental benefits from e-ticketing, like reductions of travel routes, because tickets are purchased from home or mobile devices. The dematerialization of paper tickets is also considered to help slow down deforestation.

E-banking denotes banking services, that can be accessed electronically. Banking institutions enable their customers to consult their banking accounts via the Internet, providing almost all functionalities usually offered in branches, as well as offering additional services, for example real-time share trading. Also invoicing is done electronically, including billing and payment. In 2005, between 10 and 15 percent of all retail banking transactions in Europe where done online [2]. Data of the year 2010 shows the share of Internet users, who regularly (each month) access their banking accounts online (cf. figure 1). The diagram illustrates the obvious correlation of economic development and electronic banking usage. The highest rate was determined in Canada, where about 65 percent of Internet users use online banking services each month [4]. In the USA this rate is 45 percent, which indicates, that even within Internet users, more than half of them prefer conventional offline banking, representing that e-banking is still far from dominating banking services.


Figure 1: TOP 10 Countries by Online Banking Penetration (% of Internet users, age 15+) [4]

One of the environmental benefits of e-banking are reductions of paper production and usage. This is caused paperless transactions and digital account statements, but can be offset by users printing their transaction confirmations or similar. Additional potential carbon savings could arise from reduced travel to bank branches. On the other hand the IT infrastructure needed for e-banking accounts for a certain amount of energy consumption and carbon emissions. At current state, it is unlikely, that e-banking already has positive environmental impact, but there is a certain potential of reductions in resource use. If transactions and banking services were done exclusively electronic, this would account for significant reductions in building costs, due to no longer needed branches. Today in fact, e-banking services supplement traditional services and therefore rather cause additional negative environmental impact, than reducing it [5].

Digital music is distributed as electronic music files, rather than on physical data carriers. These files can be purchased and downloaded from servers via the Internet and stored locally on hard disks or external storage (including CDs). In 2010 the global trade value of the digital music market was 4.6 billion USD, which accounts for 29 percent of the total industry revenue [6]. The music industries has therefore the second biggest share in digital distribution of all creative industries, just after the game industry (cf. figure 2). This depicts the high adoption of the Internet as distribution channel for music. In comparison to that the film industry only has a 1 percent share of revenues, and obviously still focus on conventional trade. Reasons for this may be piracy issues and the large amounts of data of video files compared to audio files. The environmental benefit arising from digital music is attributed to reductions in energy and resource use due to the lack of physical data carriers like CDs. Downloading music files cuts resource consumption by about 50 percent in comparison to conventional trade, or online shopping [2]. As no rebound effects of digital music have been identified, this form of dematerialization has still large potential for environmental improvements, keeping in mind, that the majority of music is still distributed on physical data carriers, as it is practiced by the film industry too.


Figure 2: Revenue shares of the creative industries in digital distribution [6]

E-books, e-zines and e-papers are terms for electronically published media that is conventionally printed, like newspapers, magazines or books. The possibilities provided by ICT range from web based solutions, which can be read online, to offline versions, which have to be ported to mobile devices (e.g. e-reader). Due to the proliferation of smartphones and tablet computers, the share of electronic media can be expected to grow, compared to printed media. Gartner analysts published forecasts stating, that the global sales of Media Tablets will rise from 70 million devices in 2011 to almost 300 million devices in 2015 [7]. Traditional computers and notebooks are not especially suitable for reading, due to usability and screen technology. Therefore tablet computers and e-readers are getting popular at the moment, since they provide better handling and are portable. In theory e-books save paper and the energy used in paper production, and consequently reduce deforestation. On the other hand the production of reading devices is quite energy intense and energy is needed for operation and disposal. The conclusion is that the environmental impact of e-books strongly depends on user habits. It is essential, how many printed books an e-reader replaces in it’s lifetime and how long this lifetime is, before the device gets replaced. A tablet computer or an e-reader produces about 130 to 170 kg of CO2e over its lifecycle, whereas a printed book accounts for about 4 kg [8]. Therefore a device would have to replace more than 40 printed books to reduce carbon emissions. But beside the energy needed for production also the used materials have to be considered. Paper books are made of wood, which is a renewable material. Electronic reading devices need plastics, metals and certain chemicals in production, which are materials with much more negative impact on the environment and human health than wood. Including these considerations into the calculation of the environmental impact of e-books, a state of the art electronic reading device would have to substitute more than 60 books to increase sustainability [8].

References

[1] L. Neves. Responding to the new challenge of ict-driven sustainability. Global e-SuStainability initiative (GeSI).

[2] Bio Intelligence Service. Impacts of information and communication technologies on energy efficiency, final  report. ftp://ftp.cordis.europa.eu/pub/fp7/ict/docs/sustainable-growth/ict4ee-final-report_en.pdf, September 2008. Accessed: 2013-02-12.

[3] J.H. Ausubel and P.E. Waggoner. Dematerialization: Variety, caution, and persistence. Proceedings of the National Academy of Sciences (PNAS), vol. 105 no. 35:12774–12779, 2008.

[4] ComScore, Inc. Top 10 countries by online banking penetration. http://www.comscoredatamine.com/2010/10/top-10-countries-by-online-banking-penetration/, October 2010. Accesssed: 2013-03-06.

[5] B. Cushman-Roisin. Environmental impacts of e-commerce. http://engineering.dartmouth.edu/~d30345d/courses/engs171/eCommerce.pdf, 2011. Accessed: 2013-03-06.

[6] IFPI. Digital music report 2011. http://www.ifpi.org/content/library/DMR2011.pdf, 2011. Accessed: 2013-03-06.

[7] Gartner, Inc. Forecast: Media Tablets by Open Operating System, Worldwide, 2008-2015, April 2011.

[8]  Green Press Initiative. Environmental impacts of e-books. http://www.greenpressinitiative.org/documents/ebooks.pdf. Accessed: 2013-03-06.




E-Commerce

Electronic commerce (e-commerce) can be defined as “the buying and selling of products and services over the Internet or other electronic networks” [1]. It is a term for “the paperless exchange of business information”, referring “to Internet shopping, online stock and bond transactions, the downloading and selling of ’soft merchandise’ and business-to-business transactions” [2]. In short, e-commerce means to transact business electronically. Today, in most cases the transaction channel for e-commerce is the Internet. For this reason the expansion of e-commerce can be directly linked to the growth and increased utilization of the Internet. At the beginning of the year 2000 the Internet had about 300 million users, whereas in June 2011 this number was determined to be more than 2,100 million, which is 30 percent of the world population [3].

In an environmental context the proliferation of e-commerce has positive as well as negative impact. E-commerce inheres that products are purchased online, which means that the travel routes to shopping malls and stores drop out and the physical traffic and fuel consumption decreases. This clearly results in certain emission savings. Another example for emissions reductions achieved by e-commerce are digital products (e.g. music distributed as MP3 instead of CD), which can be distributed with low carbon impact, since nothing physical has to be produced. On the other hand, products purchased via the Internet have to be packed and shipped to the customers, a process that causes additional emissions. The question is: Do the emissions savings due to dematerialization and optimized distribution overweight the emissions arising from packaging, shipping and additional IT infrastructure? This question may be impossible to answer correctly today. The interrelations associated with e-commerce are too complex to allow profound estimations. However a closer look at the impact of e-commerce should be taken, in order to know about the effects in separate.
The economic, environmental and social effects of e-commerce can be divided into three categories. There are first-order, second-order and third-order effects [4]:
  • First-order effects: These effects arise due to the need for ICT infrastructure and it’s direct use. The production, utilization and disposal of electronic systems consumes energy and therefore produces carbon emissions. Additionally the chemical substances needed for the production of electronic equipment constitute a potential threat for workers and the environment. Together with an increase of e-commerce these negative effects of ICT equipment on the environment are rising. 
  • Second-order effects: As second-order effects the changes in markets and business activities are described. E-commerce changes business due to a new channel of marketing and distribution, which can be noted as a change of the supply chain. Products are ordered via the Internet and some products are dematerialized. 
    • The economic effects of these changes are smaller warehouses, just-in-time delivery and fewer intermediaries. There is also an increased need for communication and coordination, as well as more frequent transport. 
    • The environmental impact of these effects expresses as reduced emissions from warehouse building and utilization, but also as increased emissions from transport. The higher demand for packaging has direct environmental influence too. 
    • The social effects in this context arise from an increasing amount of online orders and the consumption of digitalized products. These actions are directly linked to a more intense use of computer equipment and a reduction of shopping trips to stores and malls. The changed habits can lead to a change of society and potentially inhere health effects, due to decreasing mobility (obesity) and unidirectional stress of muscles while handling computers. 
  • Third-order effects: These tertiary effects arise from consecutive rebound effects. 
    • The impact of e-commerce influences economy by a change in consumer information and therefore a change in competition experienced by companies. This results in a change of prices, which leads to shifting demand. It is obvious that competition increases by the expansion of e-commerce. For this reason e-commerce most likely leads to lower prices and subsequently to increasing demand. 
    • A number of rebound effects influence the environment: There are changes in energy use patterns, in transportation intensity and infrastructure (freight airports, ferry ports and shipping ports) and in land use (from shopping malls to smaller more decentralized warehouses). Some of these effects result in emissions savings, while some of the emissions just arise from a different source. 
    • As mentioned before the social impact of e-commerce is a change in consumer and lifestyle habits. The third-order effects in this context are characterized by substitute activities of consumers. Since there is a possibility to save time and money by buying online, it is likely that the saved time and money is invested elsewhere. This change in consumer habits has a certain influence on the environment and on economy, but it’s impact is hard to assess. 
One of the most considerable arguments supporting that e-commerce has a positive net environmental impact is the fact, that it enables a more direct way of distribution with a fewer number of retailers [5]. In conventional commerce a product passes through a significant number of trade partners on it’s way from the manufacturer to the consumer. These trade partners can be retailers, franchises, wholesalers, distributors or brokers. In contrast to this, e-commerce enables a distribution with just one, or even without any intermediary. Manufacturers can sell their goods in their own online shops and ship them directly to the consumer. In practice there is still one retailer (e.g. online warehouses) in most of the cases, that orders goods directly from the manufacturer and sells them to consumers. The more direct distribution results in higher efficiency and reduced costs. Figure 1 depicts the paradigm change from conventional marketing to electronic commerce.


Figure 1: Traditional commerce (left) and e-commerce [1] 

The electronic exchange of business data and higher efficiency in the supply chain enable the manufacturers to market their products at lower prices compared to conventional commerce (see efficiency in figure 1). Additionally the markups by intermediaries drop out at electronic commerce, due to fewer retailers. Intermediaries usually sell their goods at a higher price as they paid for them. This means that the price of a good rises with every trade partner it passes through. The result of the change in distribution due to electronic commerce are decreasing costs, lower prices and - by the rules of simple economics - increasing demand, which also means increasing consumption. Therefore the efficiency gains of e-commerce consequently result in rising emissions. This coherence was recognized by researchers already more than a

decade ago [1] and is a strong argument to question the net environmental improvement by e-commerce.
When thinking about the question, if the environmental impact of e-commerce is positive or negative in total, several aspects have to be considered, that bring changes in greenhouse gas emissions and resource usage. The effects of e-commerce that have either positive or negative influence on the environment are summarized in table 1. 


Table 1: The positive and negative impact of e-commerce on the environment

Considering the large number of negative environmental aspects of e-commerce it is doubt- ful, that e-commerce can lead to environmental improvements. Table 1 shows that every positive environmental aspect is accompanied by potentially negative impacts. E-commerce is like every kind of commerce designed to create economic growth, which is in most of the cases counterproductive to environmental goals. This statement can be confirmed by the fact that economic growth involves growing energy demand. Therefore sustainability and economic growth are contradictory [1]. However, the opinions of researchers diversify on this topic, since there is currently no telling argument to answer the question if e-commerce can substantially contribute to a low carbon economy. The SMART 2020 Report constitutes that e-commerce could account for a reduction of 3 percent of the emissions arising from shopping transport [6]. Although this would imply savings of 0.03 GtCO2e in 2020, this cannot be claimed as a huge expectation of the positive environmental impact of e-commerce.

References

[1] J. C. Yang.   Environmental impact of e-commerce and other sustainability - implications of the information economy. Working Paper of the Research Group on the Global Future, Center for Applied Policy Research (CAP), Industrial Technology Research Institute, 2000.

[2] S. Tiwari and P. Singh. Environmental impacts of e-commerce. International Proceedings of Chemical, Biological & Environmental Engineering (IPCBEE), vol.8:202–207, 2011.

[3] InternetWorldStats.com. Internet growth statistics. http://www.internetworldstats.com/emarketing.htm. Accessed: 2013-03-06.

[4] B. Cushman-Roisin. Environmental impacts of e-commerce. http://engineering.dartmouth.edu/~d30345d/courses/engs171/eCommerce.pdf, 2011. Accessed: 2013-03-06.

[5] L.D.D. Harvey. Energy and the new reality 1: Energy Efficiency and the Demand for Energy services. Earthscan, 2010.

[6] The Climate Group. Smart 2020: Enabling the low carbon economy in the information age. Technical report, The Climate Group on behalf of the Global e-Sustainability Initiative (GeSI), 2008.