Environmental Benefits and Challenges of Online Invoicing

Abstract

Invoicing in the information and communication sector is increasingly processed online, that way being a virtual product. As earlier studies could already show, virtual products often hold the potential to reduce environmental burden compared with conventional alternatives (see e.g. Quack and Oley 2002, Quack and Gensch 2001). Against this background it was the objective of this study (Quack and Möller 2004) to assess the life cycle environmental impacts of the online invoicing system in relation to the conventional paper system. The assessment was carried out for both invoicing options for the fixed network invoice of German Telecom (T-Com). Basically, the results of the study show significant environmental savings potentials for online invoicing. However, customer behaviour has decisive influence on the environmental profile. Most important parameters in this context are the quantity and quality of print-outs produced by the customers. In addition to the consumers, also the enterprises should seize their responsibility by designing their online product for environmentally conscious use and by investing saved money in environmentally-sound projects.