Nudging and Environmental Corporate Responsibility: A Natural Experiment
22 Pages Posted: 3 Apr 2018
Date Written: April 3, 2018
We devise a ‘nudging’ natural experiment to test the impact of a simple form of advertising on environmentally responsible products with/without the increase of the responsible product price. We find that the simple use of a small shelf-poster explaining the importance of buying a green product (with/without a concurring price increase) generates significant changes in market shares for some of the product classes for both food and non-food products. Part of the effect is generated by the reduced price elasticity of consumers to the poster-plus-price-increase treatment.
Keywords: nudging, environmental sustainability, randomised field experiment
JEL Classification: C93, D12, M14, Q56
Suggested Citation: Suggested Citation