Green status seeking and endogenous reference standards

Heinz Welsch and Jan Kühling ()

Environmental Economics and Policy Studies, 2016, vol. 18, issue 4, No 9, 625-643

Abstract: Abstract We develop and test a model of social comparison in which individuals gain status through green consumption relative to the green consumption of their peers and in which they strategically choose their peers so as to maximize total utility. In our framework consumers first choose their peers and associated green reference standard, taking into account that later this will affect the benefits and costs of green consumption choices. By using a unique set of survey data, we find evidence consistent with our framework of green status seeking and endogenous green reference standards. Environmental concern is found to have an important indirect effect on green consumption choices as it implies a more ambitious reference standard.

Keywords: Pro-environmental consumption; Status seeking; Endogenous reference standard; Conspicuous conservation; Social comparison (search for similar items in EconPapers)
JEL-codes: D11 D12 Q50 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s10018-015-0134-1

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