Nudging and Environmental Corporate Responsibility: A Natural Experiment

22 Pages Posted: 3 Apr 2018

See all articles by Leonardo Becchetti

Leonardo Becchetti

University of Rome Tor Vergata - Faculty of Economics

Francesco Salustri

UCL Institute for Global Health

Pasquale Scaramozzino

University of Rome II - Faculty of Economics; University of London - School of Oriental and African Studies (SOAS); University of London - Centre for Financial and Management Studies (CeFIMS)

Date Written: April 3, 2018

Abstract

We devise a ‘nudging’ natural experiment to test the impact of a simple form of advertising on environmentally responsible products with/without the increase of the responsible product price. We find that the simple use of a small shelf-poster explaining the importance of buying a green product (with/without a concurring price increase) generates significant changes in market shares for some of the product classes for both food and non-food products. Part of the effect is generated by the reduced price elasticity of consumers to the poster-plus-price-increase treatment.

Keywords: nudging, environmental sustainability, randomised field experiment

JEL Classification: C93, D12, M14, Q56

Suggested Citation

Becchetti, Leonardo and Salustri, Francesco and Scaramozzino, Pasquale, Nudging and Environmental Corporate Responsibility: A Natural Experiment (April 3, 2018). CEIS Working Paper No. 426, Available at SSRN: https://ssrn.com/abstract=3155252 or http://dx.doi.org/10.2139/ssrn.3155252

Leonardo Becchetti (Contact Author)

University of Rome Tor Vergata - Faculty of Economics ( email )

Via Columbia, 2
I-00133 Rome
Italy

Francesco Salustri

UCL Institute for Global Health ( email )

United Kingdom

Pasquale Scaramozzino

University of Rome II - Faculty of Economics ( email )

Via Columbia n.2
Rome, 00100
Italy

University of London - School of Oriental and African Studies (SOAS) ( email )

Thornhaugh Street
Russell Square: College Buildings 541
London, WC1H 0XG
United Kingdom

University of London - Centre for Financial and Management Studies (CeFIMS)

Thornhaugh Street
London, WC1H 0XG
United Kingdom

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