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Operationalizing Carbon-Neutral Living: A Case Study of A Business Model for Carbon-Negative Products

Author

Listed:
  • Yue-Rong Hong

    (Department of Information Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan)

  • Chien-Ming Lee

    (Institute of Natural Resources Management, National Taipei University, Taipei 237, Taiwan)

  • Tsai-Chi Kuo

    (Department of Industrial Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan)

Abstract

Behavior change is the last hurdle to achieving net zero emissions by 2050. However, if the public does not take responsibility for emissions that arise from their life activities, low-carbon behavioral changes are unlikely to be adopted. This article introduces personal social responsibility (PSR), and advocates that individuals should make good use of consumer sovereignty and wise consumption power. This study aims to investigate the feasibility of the carbon-negative business model and, accordingly, the opportunity to practice carbon neutrality in personal life. This article uses carbon-negative commodities as a carrier to establish a new model of personal carbon trading (PCT), and introduces behavioral nudge design to encourage the public to adopt low-carbon behavior. Regression analysis shows that the sales volume of carbon-negative products and the cumulative number of members are significantly related (10% and 1% significance). This indicates that attaching 1 kg of carbon credits (costing about TWD 0.5) can stimulate sales of a carbon-negative product to increase by 1.6, making it economically feasible. This verifies that the public can accumulate carbon assets through the consumption of carbon-negative products, offset carbon emissions from daily life, and gain the opportunity to practice carbon-neutral life. Product carbon footprint labeling is the basis of this pilot project; therefore, promoting product carbon footprint labels is needed, and is recommended to ensure a successful carbon-neutral living transition.

Suggested Citation

  • Yue-Rong Hong & Chien-Ming Lee & Tsai-Chi Kuo, 2023. "Operationalizing Carbon-Neutral Living: A Case Study of A Business Model for Carbon-Negative Products," Sustainability, MDPI, vol. 15(14), pages 1-13, July.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:14:p:11315-:d:1198541
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    References listed on IDEAS

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    5. Nie, Qingyun & Zhang, Lihui & Li, Songrui, 2022. "How can personal carbon trading be applied in electric vehicle subsidies? A Stackelberg game method in private vehicles," Applied Energy, Elsevier, vol. 313(C).
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