SummaryIn this article, we present a literature review of the general and environmental effects of e-commerce in various parts of the demand-supply chain. These are further translated into effects on greenhouse gas (GHG) emissions in the food production and consumption system. The literature study revealed many opportunities for e-commerce to reduce GHG emissions in the food production and consumption system. Some possibly negative effects were also identified. Electronic grocery shopping (e-grocery) home delivery service was chosen as the subject of a case study because of its direct and indirect potential for reducing the GHG emissions in the food production and consumption system. GHG emission reduction potential through the implementation of various e-grocery home delivery strategies was quantified. Depending on the home delivery model used, it is possible to reduce the GHG emissions generated by grocery shopping by 18% to 87% compared with the situation in which household members go to the store themselves. We estimate that the maximum theoretical potential of e-grocery home delivery service for reducing the GHG emissions of Finland is roughly 0.3% to 1.3%; however, the current and estimated future market potential is much smaller, because the estimated market share of e-grocery services is only 10% by 2005. Narrowing the gap between the theoretical and the actual potential requires a model that would simultaneously provide additional value to the consumer and be profitable to companies. To be able to achieve significant reductions in GHG emissions, system-level innovations and changes are required. Further research is needed before conclusions can be reached as to whether e-commerce and e-grocery are useful tools in that respect.
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