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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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    Cited by:

    1. Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2019. "Does advertising the green benefits of products contribute to sustainable development goals? A quasi‐experimental test of the dilution effect," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 786-793, July.
    2. 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.
    3. Martinho, Graça & Pires, Ana & Portela, Gonçalo & Fonseca, Miguel, 2015. "Factors affecting consumers’ choices concerning sustainable packaging during product purchase and recycling," Resources, Conservation & Recycling, Elsevier, vol. 103(C), pages 58-68.
    4. Johan Jansson & Jonas Nilsson & Frida Modig & Gabriella Hed Vall, 2017. "Commitment to Sustainability in Small and Medium‐Sized Enterprises: The Influence of Strategic Orientations and Management Values," Business Strategy and the Environment, Wiley Blackwell, vol. 26(1), pages 69-83, January.
    5. Sukhbir Sandhu & Lucie K. Ozanne & Clive Smallman & Ross Cullen, 2010. "Consumer driven corporate environmentalism: Fact or fiction?," Business Strategy and the Environment, Wiley Blackwell, vol. 19(6), pages 356-366, September.
    6. Alexander J. Stein & Marcelo Lima, 2022. "Sustainable food labelling: considerations for policy-makers," Review of Agricultural, Food and Environmental Studies, Springer, vol. 103(2), pages 143-160, June.
    7. Desjana Grymshi & Eva Crespo‐Cebada & Ahmed Elghannam & Francisco J. Mesías & Carlos Díaz‐Caro, 2022. "Understanding consumer attitudes towards ecolabeled food products: A latent class analysis regarding their purchasing motivations," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 93-107, January.
    8. Torsten J. Gerpott & Ilaha Mahmudova, 2010. "Determinants of price mark‐up tolerance for green electricity – lessons for environmental marketing strategies from a study of residential electricity customers in Germany," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 304-318, July.
    9. 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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