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Anti-Consumerism: Stick or Carrot?

Author

Listed:
  • Iwan Bos

    (Department of Organisation, Strategy, and Entrepreneurship, Maastricht University)

  • Giovanni Maccarrone

    (Department of Social and Economic Sciences, Sapienza University of Rome)

  • Marco A. Marini

    (Department of Social and Economic Sciences, Sapienza University of Rome)

Abstract

Anti-consumerism is a doctrine that aims to discourage excessive consumption because of its damaging effect on the environment. It can either focus on creating psychic costs for consumers (a ‘stick’) or psychic benefits for non-consumers (a ‘carrot’). This paper examines the impact of these two approaches on competition and welfare. The competitive effect is comparable in both cases – anti-consumerism (weakly) reduces competitive pressure as well as prices, outputs and profits. In terms of consumer and social welfare, however, the carrot performs strictly better than the stick.

Suggested Citation

  • Iwan Bos & Giovanni Maccarrone & Marco A. Marini, 2024. "Anti-Consumerism: Stick or Carrot?," Working Papers 2024.07, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2024.07
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    References listed on IDEAS

    as
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    3. Nieves García-de-Frutos & José Manuel Ortega-Egea & Javier Martínez-del-Río, 2018. "Anti-consumption for Environmental Sustainability: Conceptualization, Review, and Multilevel Research Directions," Journal of Business Ethics, Springer, vol. 148(2), pages 411-435, March.
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    5. Barbara Seegebarth & Mathias Peyer & Ingo Balderjahn & Klaus-Peter Wiedmann, 2016. "The Sustainability Roots of Anticonsumption Lifestyles and Initial Insights Regarding Their Effects on Consumers' Well-Being," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(1), pages 68-99, March.
    6. George Deltas & Donna Ramirez Harrington & Madhu Khanna, 2013. "Oligopolies with (Somewhat) Environmentally Conscious Consumers: Market Equilibrium and Regulatory Intervention," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 22(3), pages 640-667, September.
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    More about this item

    Keywords

    Anti-Consumerism; Stick and Carrot; Environmental Externalities;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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