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Green status seeking and endogenous reference standards

Author

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  • Heinz Welsch

    (University of Oldenburg)

  • Jan Kühling

    (University of Oldenburg)

Abstract

We develop and test a model of social comparison in which individuals gain status through green consumption relative to the green consumption of their peers and in which they strategically choose their peers so as to maximize total utility. In our framework consumers first choose their peers and associated green reference standard, taking into account that later this will affect the benefits and costs of green consumption choices. By using a unique set of survey data, we find evidence consistent with our framework of green status seeking and endogenous green reference standards. Environmental concern is found to have an important indirect effect on green consumption choices as it implies a more ambitious reference standard.

Suggested Citation

  • Heinz Welsch & Jan Kühling, 2016. "Green status seeking and endogenous reference standards," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(4), pages 625-643, October.
    • Handle: RePEc:spr:envpol:v:18:y:2016:i:4:d:10.1007_s10018-015-0134-1
    DOI: 10.1007/s10018-015-0134-1
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    Cited by:

    1. Binder, Martin & Blankenberg, Ann-Kathrin & Guardiola, Jorge, 2020. "Does it have to be a sacrifice? Different notions of the good life, pro-environmental behavior and their heterogeneous impact on well-being," Ecological Economics, Elsevier, vol. 167(C).
    2. Martin Binder & Ann-Kathrin Blankenberg & Heinz Welsch, 2020. "Pro-environmental Norms, Green Lifestyles, and Subjective Well-Being: Panel Evidence from the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(3), pages 1029-1060, December.
    3. Herbes, Carsten & Rilling, Benedikt & MacDonald, Scott & Boutin, Nathalie & Bigerna, Simona, 2020. "Are voluntary markets effective in replacing state-led support for the expansion of renewables? – A comparative analysis of voluntary green electricity markets in the UK, Germany, France and Italy," Energy Policy, Elsevier, vol. 141(C).
    4. Welsch, Heinz & Kühling, Jan, 2018. "How Green Self Image is Related to Subjective Well-Being: Pro-Environmental Values as a Social Norm," Ecological Economics, Elsevier, vol. 149(C), pages 105-119.
    5. Blankenberg, Ann-Kathrin & Alhusen, Harm, 2019. "On the determinants of pro-environmental behavior: A literature review and guide for the empirical economist," University of Göttingen Working Papers in Economics 350, University of Goettingen, Department of Economics, revised 2019.
    6. Martin Binder & Ann-Kathrin Blankenberg & Heinz Welsch, 2019. "Pro-environmental norms and subjective well-being: panel evidence from the UK," Working Papers V-417-19, University of Oldenburg, Department of Economics, revised Jan 2019.
    7. Hui Zhou & Haitao Yin & Fang Yuan & Feng Wang, 2019. "Social relationships, public media, and pro-environmental behaviors," Empirical Economics, Springer, vol. 57(2), pages 569-588, August.
    8. Binder, Martin & Blankenberg, Ann-Kathrin & Welsch, Heinz, 2019. "Peer influences and proenvironmental behavior: Panel evidence for the role of regional prevalence and diversity," University of Göttingen Working Papers in Economics 367, University of Goettingen, Department of Economics.

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    More about this item

    Keywords

    Pro-environmental consumption; Status seeking; Endogenous reference standard; Conspicuous conservation; Social comparison;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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