Study on the Source of Negative Externality in the Sharing Economy

The rapid development of the sharing economy has brought positive effects to many people, but it has also led to some negative consequences. Among them, the negative externalities to society caused by disorderly development of the sharing economy are particularly evident. This paper uses the qualitative comparative analysis (QCA) method to study the sources of negative externality in the sharing economy, and puts forward three paths for the negative externality source. It is clear that the costs and benefits of individual behavior, convenience of behavior, and extent of public goods attribute, degree of separation of property rights, and restraint mechanisms contribute to these negative externalities. Findings reveal that negative externalities in the sharing economy come from the joint effect of the sharing degree of the product or service and the constraint mechanism, indicating that the current main modes of the shared economy increase the possibility of negative externalities.