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Dual effects of individuals’ sustainability orientation on investment and consumption: Evidence from environmental issues in Japan

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  • Aman, Hiroyuki
  • Kasuga, Norihiro
  • Motonishi, Taizo
  • Yamane, Chisako

Abstract

Individuals can engage in sustainable economic activities both as investors and consumers. To examine their dual roles in promoting sustainability, we analyze preferences for sustainable investment compared to green consumption through a survey of Japanese individuals. We find no substantial difference in non-monetary motivations for sustainable activities, as the proportion of respondents choosing sustainable investments with low returns is comparable to that for green consumption with high price. Furthermore, environmental orientation has a common effect on both sustainable investment and green consumption. Specifically, individuals with high environmental orientation prefer sustainable investments with low returns and also green consumption at high product prices. However, environmental orientation has no significant effect on risky sustainable investments, indicating that strong pro-environmental awareness may not be sufficient to overcome the risks associated with investment activities.

Suggested Citation

  • Aman, Hiroyuki & Kasuga, Norihiro & Motonishi, Taizo & Yamane, Chisako, 2025. "Dual effects of individuals’ sustainability orientation on investment and consumption: Evidence from environmental issues in Japan," Japan and the World Economy, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:japwor:v:76:y:2025:i:c:s0922142525000362
    DOI: 10.1016/j.japwor.2025.101332
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