Abstract: This paper develops a theory of conspicuous conservation,
a phenomenon related to conspicuous consumption in which individuals
seek status through displays of austerity amid growing concern about
environmental protection. We identify a statistically and economically
significant conspicuous conservation effect in vehicle purchase
decisions and estimate a mean willingness to pay for the green signal
provided by the distinctively designed Toyota Prius in the range of $430
to $4,200 depending upon the owner's location. Results are related to
the growing literature on green markets and suggest policy should target
less conspicuous conservation investments that will be under-provided
relative to those that confer a status benefit.
1 North Carolina State University
2 Abt Associates, Inc.
Journal of Environmental Economics and Management via Elsevier Science Direct www.ScienceDirect.com
Available online 26 December 2013; In Press, Accepted Manuscript
Keywords: Conspicuous consumption; Signaling; Impure public good; Green markets; Conservation; Hybrid
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