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Valuating the environmental impact of debit card payments

Erik Roos Lindgreen, Milan van Schendel, Nicole Jonker, Jorieke Kloek, Lonneke de Graaff and Marc Davidson

DNB Working Papers from Netherlands Central Bank, Research Department

Abstract: Purpose: Consumers in the Netherlands made more than 3.2 billion debit card transactions at points-of-sale in 2015, corresponding to over half of all point-of-sale payments in that year. This study provides insights into the environmental impact of debit card transactions based on a life cycle assessment (LCA). In addition, it identifies several areas within the debit card payment chain where the environmental impact can be reduced. Conclusions: For the first time, the environmental consequences of electronic card payment systems are evaluated. The total environmental impact of debit card transactions in the Netherlands is relatively modest compared to the impact of cash payments, which are the closest substitute of debit card payments at the point-of-sale. Scenario analysis indicates that the environmental impact can be reduced by 44%.

Keywords: Datacentre; Debit card payment system; Debit card; Environmental impact; LCA; Payment terminal (search for similar items in EconPapers)
JEL-codes: E42 Q50 (search for similar items in EconPapers)
Date: 2017-10
New Economics Papers: this item is included in nep-env, nep-eur, nep-mac and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:574

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