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EMAC 2024 Annual


Beyond the Sustainability-Liability Effect: Real Consumer Choices Favor Sustainable Products
(A2024-119435)

Published: May 28, 2024

AUTHORS

Hege Landsvik, Norwegian School of Economics; Siv Skard, Norwegian School of Economics; Lars Jacob Pedersen, Norwegian School of Economics; Sveinung Jørgensen, Norwegian School of Economics; Hallgeir Sjåstad, Norwegian School of Economics & SNF (Center for Applied Research at NHH)

ABSTRACT

As consumer focus on sustainability intensifies, we explore whether sustainability is viewed as a liability or asset in product choices. The sustainability-liability hypothesis predicts lower quality judgments for sustainable products in strength-related product categories, favoring non-sustainable alternatives. In contrast, the sustainability-asset hypothesis predicts that environmental concerns, self-concept motivations, and “halo effects” will favor sustainable products. Using lab-in-the-field (N = 245) and survey experiments (N = 807), we tested the competing hypotheses while also contrasting hypothetical and real choices. The results showed a sustainability-liability effect in quality judgments but a contrasting sustainability-asset effect in consumer choices. Notably, the sustainability-asset effect was even stronger in real (vs. hypothetical) choices, driven by self-concept motivations and halo effects (aesthetic appeal and innovativeness). Crucially, our data indicates that when consumers face real choices, the intrinsic and social appeal of sustainable products holds higher value than previously believed.