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The social economics of ethical consumption: Theoretical considerations and empirical evidence

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  • Martha A. Starr

Abstract

Recent years have seen rising discussion of ethical consumption as a means of stemming global warming, challenging unsavory business practices, and promoting other pro-social goals. This paper first lays out a conceptual framework for understanding the spread of ethical consumption, in which heterogeneous preferences and sensitivity to social norms feature centrally. It then presents empirical evidence from a well-known nationally representative survey on factors associated with tendencies to buy ethically. It is found that, ceteris paribus, people are more likely to buy ethically when others around them do too, consistent with a role of social norms in promoting ethical-consumption behaviors.

Suggested Citation

  • Martha A. Starr, 2009. "The social economics of ethical consumption: Theoretical considerations and empirical evidence," Working Papers 2009-07, American University, Department of Economics.
    • Handle: RePEc:amu:wpaper:2009-07
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    Cited by:

    1. Degli Antoni, Giacomo & Sacconi, Lorenzo, 2013. "Social responsibility, activism and boycotting in a firm–stakeholders network of games with players’ conformist preferences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 216-226.
    2. repec:ers:journl:v:xx:y:2017:i:3a:p:370-385 is not listed on IDEAS
    3. Larissa Schütte & Diana Gregory-Smith, 2015. "Neutralisation and Mental Accounting in Ethical Consumption: The Case of Sustainable Holidays," Sustainability, MDPI, Open Access Journal, vol. 7(6), pages 1-14, June.
    4. repec:oup:erevae:v:44:y:2017:i:4:p:634-657. is not listed on IDEAS
    5. Lades, Leonhard K., 2014. "Impulsive consumption and reflexive thought: Nudging ethical consumer behavior," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 114-128.
    6. Martha A. Starr, 2015. "The Economics of Ethical Consumption," Working Papers 2015-01, American University, Department of Economics.
    7. Leßmann, Ortrud & Masson, Torsten, 2015. "Sustainable consumption in capability perspective: Operationalization and empirical illustration," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 64-72.
    8. Sarah Hemmerling & Sina Nitzko & Achim Spiller, 2016. "Guest Editorial," ECONOMIA AGRO-ALIMENTARE, FrancoAngeli Editore, vol. 18(2), pages 129-132.
    9. Christopher Jeffords, 2014. "Preference-directed regulation when ethical environmental policy choices are formed with limited information," Empirical Economics, Springer, vol. 46(2), pages 573-606, March.
    10. Simone D'Alessandro & Domenico Fanelli, 2015. "The Role of Income Distribution in the Diffusion of Corporate Social Responsibility," Metroeconomica, Wiley Blackwell, vol. 66(2), pages 187-212, May.
    11. repec:eee:joreco:v:40:y:2018:i:c:p:221-228 is not listed on IDEAS
    12. Leonard, Tammy & McKillop, Caitlin & Carson, Jo Ann & Shuval, Kerem, 2014. "Neighborhood effects on food consumption," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 99-113.
    13. repec:ers:journl:v:xx:y:2017:i:3b:p:350-365 is not listed on IDEAS
    14. Mari Niva & Johanna Mäkelä & Nina Kahma & Unni Kjærnes, 2014. "Eating Sustainably? Practices and Background Factors of Ecological Food Consumption in Four Nordic Countries," Journal of Consumer Policy, Springer, vol. 37(4), pages 465-484, December.
    15. Mark Hudson & Ian Hudson & Jason D. Edgerton, 2013. "Political Consumerism in Context: An Experiment on Status and Information in Ethical Consumption Decisions," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(4), pages 1009-1037, October.

    More about this item

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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