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Caveat emptor – let the buyer beware! environmental labelling and the limitations of ‘green’ consumerism

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  • Esben Rahbek Pedersen
  • Peter Neergaard

Abstract

In recent years, the idea of ‘green’ or ‘political’ consumers expressing their political beliefs in everyday life has been widely embraced. Eager to satisfy the needs of this new market segment, firms have allocated substantial resources to environmental management, social accountability, corporate citizenship, occupational health and safety etc. During the 1990s, the industrialized world also witnessed a growing number of environmental labels, expected to guide the political consumers in their shopping decisions. Evaluations of these environmental labelling (eco‐labelling) programmes indicate that some labels and product groups receive a great deal of attention while others remain in obscurity. To understand these differences, the paper will discuss some of the factors that determine the market impact of environmental labelling. It is concluded that the concept of the ‘green’ consumer is over‐simplified and fails to capture the actual complexity of consumer values, attitudes and behaviour. The results are based on existing literature and our own empirical findings. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • Esben Rahbek Pedersen & Peter Neergaard, 2006. "Caveat emptor – let the buyer beware! environmental labelling and the limitations of ‘green’ consumerism," Business Strategy and the Environment, Wiley Blackwell, vol. 15(1), pages 15-29, January.
    • Handle: RePEc:bla:bstrat:v:15:y:2006:i:1:p:15-29
    DOI: 10.1002/bse.434
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    References listed on IDEAS

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    9. Yong Liu & Dewei Yang & Hengzhou Xu, 2017. "Factors Influencing Consumer Willingness to Pay for Low‐Carbon Products: A Simulation Study in China," Business Strategy and the Environment, Wiley Blackwell, vol. 26(7), pages 972-984, November.
    10. Sasichakorn Wongsaichia & Phaninee Naruetharadhol & Johannes Schrank & Premchai Phoomsom & Kanjakhon Sirisoonthonkul & Vorrapol Paiyasen & Sedthawut Srichaingwang & Chavis Ketkaew, 2022. "Influences of Green Eating Behaviors Underlying the Extended Theory of Planned Behavior: A Study of Market Segmentation and Purchase Intention," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
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