The Causal Effect of Income Growth on Consumer Social Responsibility

68 Pages Posted: 8 Oct 2018 Last revised: 4 Sep 2020

See all articles by Björn Bartling

Björn Bartling

University of Zurich - Department of Economics; Norwegian School of Economics (NHH) - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Vanessa Valero

Loughborough University

Roberto A. Weber

University of Zurich - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2020

Abstract

We investigate whether income growth causes an increased concern for mitigating negative externalities from consumption. We conduct laboratory market experiments in which firms and consumers can exchange products that differ in the degree to which they diminish negative external impacts at the expense of higher production costs. Our treatments exogenously vary consumers’ income. The data reveal that growth in consumer income causes an increase in the share of socially responsible consumption. Such a causal relationship is important from a policy perspective, as it implies that some negative external impacts of consumption activity can be mitigated as societies experience economic growth.

Keywords: Negative externalities, social and environmental responsibility, income growth, normal goods, laboratory experiment

JEL Classification: C92, D31, D62, M14

Suggested Citation

Bartling, Björn and Valero, Vanessa and Weber, Roberto A., The Causal Effect of Income Growth on Consumer Social Responsibility (September 1, 2020). Available at SSRN: https://ssrn.com/abstract=3249788 or http://dx.doi.org/10.2139/ssrn.3249788

Björn Bartling (Contact Author)

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

Norwegian School of Economics (NHH) - Department of Economics ( email )

Helleveien 30
N-5035 Bergen
Norway

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Vanessa Valero

Loughborough University ( email )

Ashby Road
Nottingham NG1 4BU
Great Britain

Roberto A. Weber

University of Zurich - Department of Economics ( email )

Zuerich, 8006
Switzerland

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
118
Abstract Views
959
rank
220,320
PlumX Metrics