Green Coin for Sustainability and against Inequality: A Research Proposal

7 Pages Posted: 30 Apr 2021

See all articles by Orsola Garofalo

Orsola Garofalo

Copenhagen Business School

Lars Bo Jeppesen

Copenhagen Business School - Department of Strategy and Innovation

Diego Zunino

SKEMA Business School; Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG)

Date Written: April 22, 2021

Abstract

Resource depletion and income inequality are major challenges for sustainable growth. We propose a study of the impact of a “green coin” on sustainable consumption and income inequality. “Green coin” is a currency based on the natural resources one can consume. Individuals are entitled to the same yearly “sustainability budget”. Once Green coin is introduced, individuals pay two prices for a good: its normal price, and its price in Green coins. In a world of high- and low-income individuals, those with high income require more “green coins” than they have. High-income individuals can trade part of their income for Green coins with low-income individuals or shift their consumption towards sustainable goods, with lower Green coins costs. We suggest testing changes in consumption and income distribution in laboratory experiments. This research can provide insights into a market-based solution that tackles environmental and social challenges. These insights form the basis for future development of theory and policy.

Keywords: Sustainable consumption, Currency, Income inequality, Environment, Experiments

Suggested Citation

Garofalo, Orsola and Jeppesen, Lars Bo and Zunino, Diego, Green Coin for Sustainability and against Inequality: A Research Proposal (April 22, 2021). Available at SSRN: https://ssrn.com/abstract=3832316 or http://dx.doi.org/10.2139/ssrn.3832316

Orsola Garofalo

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Lars Bo Jeppesen (Contact Author)

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilevej 14A
Frederiksberg C, DK - 2000
Denmark

Diego Zunino

SKEMA Business School ( email )

60 rue Dostoïevski
Sophia Antipolis, 06902
France

Université de Nice Sophia Antipolis - Groupe de Recherche en Droit, Economie et Gestion (GREDEG) ( email )

250, rue Albert Einstein
Valbonne, 06560
France

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