Conspicuous conservation: The Prius halo and willingness to pay for environmental bona fides

Steven Sexton and Alison L. Sexton

Journal of Environmental Economics and Management, 2014, vol. 67, issue 3, 303-317

Abstract: This paper develops a theory of conspicuous conservation, a phenomenon related to conspicuous consumption in which individuals seek status through displays of austerity amid growing concern about environmental protection. We identify a statistically and economically significant conspicuous conservation effect in vehicle purchase decisions and estimate a mean willingness to pay for the green signal provided by the distinctively designed Toyota Prius in the range of $430–4200 depending upon the owner's location. Results are related to the growing literature on green markets and suggest that policy should target less conspicuous conservation investments that will be under-provided relative to those that confer a status benefit.

Keywords: Conspicuous consumption; Signaling; Impure public good; Green markets; Conservation; Hybrid (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (153)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:67:y:2014:i:3:p:303-317

DOI: 10.1016/j.jeem.2013.11.004

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