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Environmental awareness, consumption, and labor supply: Empirical evidence from household survey data

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  • Iosifidi, Maria

Abstract

What is the effect of environmental awareness on the households' consumption of polluting goods and labor supply decisions? We answer this question using household survey data from the United States and measuring environmental awareness with the decision to make environmental donations. We find that environmental awareness has a negative and economically significant effect on labor supply. The respective impact on the consumption of polluting goods is also negative, but less robust in terms of statistical significance. Our results highlight the importance of understanding the foundations of household behavior related to environmental quality. Indeed, environmentally aware households are willing to tradeoff work hours with improved environmental quality and less so to change their consumption habits.

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  • Iosifidi, Maria, 2016. "Environmental awareness, consumption, and labor supply: Empirical evidence from household survey data," Ecological Economics, Elsevier, vol. 129(C), pages 1-11.
    • Handle: RePEc:eee:ecolec:v:129:y:2016:i:c:p:1-11
    DOI: 10.1016/j.ecolecon.2016.05.007
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    8. Zhou, Li & Lei, Lei, 2017. "Can money always talk? : implication for environmental compensation by international agribusiness," IDE Discussion Papers 641, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. Singh, Gurmeet & Sharma, Shavneet & Sharma, Rashmini & Dwivedi, Yogesh K, 2021. "Investigating environmental sustainability in small family-owned businesses: Integration of religiosity, ethical judgment, and theory of planned behavior," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    10. Liu, Ziming & Yu, Lu, 2020. "Stay or Leave? The Role of Air Pollution in Urban Migration Choices," Ecological Economics, Elsevier, vol. 177(C).
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    12. Francesco Busato & Bruno Chiarini & Gianluigi Cisco & Maria Ferrara, 2023. "Green preferences," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3211-3253, April.

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