Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/306552 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 299
Version Description: 
Revised version, August 2024
Publisher: 
University of Zurich, Department of Economics, Zurich
Abstract: 
We investigate the relationship between consumers' income and socially responsible consumption that mitigates negative externalities. We conduct laboratory and online market experiments in which firms and consumers can exchange products that differ in the degree to which they diminish negative external impacts at the expense of higher production costs. Our treatments exogenously vary consumers' income. Across all three experiments, higher income causes an increase in the quantity of socially responsible products purchased and at least slightly increases the share of such products as part of total consumption. However, increases in total consumption resulting from higher income can increase negative externalities.
Subjects: 
Negative externalities
social and environmental responsibility
income effects
market experiments
JEL: 
C92
D31
D62
M14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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