Sustainability and Emissions Impact of Online Delivery Services in the US
Chamber of Progress
Economic Strategy
Chamber of Progress is a new tech industry coalition devoted to a progressive society, economy, workforce, and consumer climate. The Chamber backs public policies that will build a fairer, more inclusive country in which all people benefit from technological leaps.
The rise of e-commerce activity over the last decade has significantly influenced the demand for deliveries in the U.S. including takeouts, groceries, and online purchases. As lawmakers and transportation authorities consider how to address the rise in last-mile deliveries from online services, this study helps identify the potential of e-commerce to decrease vehicle miles traveled and carbon emissions.
Our Approach
Fourth Economy and Steer worked with industry experts to identify factors across operational efficiency, consumer behaviors, and market density that influence the efficiency of online delivery. Our team built a model to determine the scale of emissions benefits of e-commerce delivery and assists transportation authorities and federal and state regulators looking to develop ways to facilitate or limit last mile delivery services.
Facing declining gas tax revenue and budget shortfalls, many states have been exploring alternative sources for transportation funding. One alternative that has been proposed in a number of states is to impose a fee on retail delivery services–often in the form of a per-package or per-order fee. Proponents of delivery fees argue that delivery services, particularly those that use vans or heavy trucks, cause more roadway and environmental damage, and therefore should bear more of the cost of infrastructure funding.
The Results
While many factors across operational efficiency, consumer behaviors, and market density influence the efficiency of online delivery, the results of this study suggest that online delivery can be more efficient than in-person shopping trips by car. These findings are consistent with a recent MIT study that found online shopping to be more sustainable than traditional retail in more than 75% of the scenarios developed by the researchers. These results point to the role delivery services can play in reducing vehicle miles traveled and emissions for last mile delivery compared to individual trips.
Location
National