From the hype of the sharing economy to the degrowth economy

Abstract

The collaborative economy emerged over a decade ago as a sustainable and socially-conscious way of consumption. However, its promises quickly faded, exposing the collaborative hype as another iteration of capitalist dynamics under the guise of digitization processes and amidst the fallout of the Financial Crisis. In this article, we delineate the ascent and decline of this paradigm to dispel the conceptual confusion that lumped non-profit platforms with venture capital-backed startups under the same umbrella. Subsequently, we delineate the conditions under which sharing practices can foster the sustainable satisfaction of social needs, aligning with the principles of degrowth—a paradigm advocating for reducing economic activity to address the climate crisis. Drawing on prior research and employing a case study methodology from an institutional perspective, we scrutinize the transformative potential of select initiatives considered part of the collaborative paradigm, with particular emphasis on their enabling conditions and transformative capacity.