Environmental Benefits of Internet-Enabled C2C Closed Loop Supply Chains: A Quasi-Experimental Study of Craigslist

Abstract

Recently, online matching platforms (e.g., Craigslist, FreeCycle, Gumtree) have enabled consumers to directly connect with each other to buy/sell used consumer goods (electronics, furniture, packaging, etc.) that would have otherwise ended up in the waste stream. Such matching platforms can facilitate the creation of consumer-to-consumer (C2C) closed-loop supply chains (CLSCs) for used goods, which can enhance product reuse and limit reliance on recycling and disposal alternatives. Yet, the true environmental benefits of these internet-enabled C2C CLSCs remain to be ascertained. In this study, I use a quasi-experimental setup to examine how Craigslist’s entry into various U.S. geographic markets impacts a key environmental outcome: municipal solid waste (MSW). I assemble a data set from various disparate sources to test my hypothesis. I find that, on average, Craigslist’s entry into a geographic market results in a 2%–6% annual reduction in MSW per capita generated. I conduct a variety of robustness check...