Money for tomorrow: The impact of community currencies on environmental sustainability

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Journal Title

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Volume Title

School of Business | Bachelor's thesis

Date

2023

Major/Subject

Mcode

Degree programme

Johtaminen

Language

en

Pages

22+5

Series

Abstract

This study examines how community currencies can be used to improve environmental sustainability in local communities. The amount of different community currency projects has steadily increased around the world since the 1980s. Community currencies are a form of money that functions alongside official currencies, complementing their limitations. They are used for different purposes, ranging from improving social sustainability and stimulating economic activity in communities where it has slowed down to encouraging more environmentally sustainable practices like recycling on a local level. In this study, different kinds of community currencies are examined and their potential on improving environmental sustainability are evaluated through a literature review. This study demonstrates that through community currency systems, some improvement on environmental practices can be achieved on a local level, however, community currencies are likely to have a bigger impact on social sustainability. The extent of the impact of a community currency depends heavily on how widely it is accepted in the community. This study also briefly examines how a community currency should be implemented in order to be effective. Results point to the importance of effective communication about the functioning of the community currency as well as using a meaningful rationale to motivate people to use the currency. Further research is needed to evaluate the impact of community currencies on a larger scale.

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Thesis advisor

Yli-Kauhaluoma, Sari

Keywords

community currency, environmental sustainability, implementation, monetary system

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