The causal effect of income on market social responsibility

Björn Bartling, Vanessa Valero () and Roberto A. Weber
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Björn Bartling: UZH - Universität Zürich [Zürich] = University of Zurich
Vanessa Valero: IMT-BS - DEFI - Département Data analytics, Économie et Finances - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]
Roberto A. Weber: UZH - Universität Zürich [Zürich] = University of Zurich

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Abstract: We investigate the relationship between consumers' incomes and socially responsible consumption that mitigates negative externalities. We conduct laboratory and online 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' incomes. Across all three experiments, higher income causes an increase in the quantity of socially responsible products purchased and at least slightly increases the share of such products as part of total consumption. However, increases in total consumption resulting from higher income can increase negative externalities.

Keywords: Market experiments; Income effects; Social and environmental responsibility; Negative externalities (search for similar items in EconPapers)
Date: 2025-12-29
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Published in The Economic Journal, In press, ⟨10.1093/ej/ueaf064⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05504649

DOI: 10.1093/ej/ueaf064

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