Pricing Guilt: How consumers purchase voluntary carbon offsets in online retail
(A2025-126267)

AUTHORS

Katherine Rother, University of Zurich; Radu Tanase, Senior Research Associate – Department of Business Administration, Chair for Marketing and Market Research University of Zurich; Martin Natter, University of Zurich; Luxi Shen, Chinese University of Hong Kong; René Algesheimer, University of Zurich

ABSTRACT

E-commerce retailers now offer one-click carbon offset options at checkout, making it easier for consumers to neutralize their shopping emissions. However, despite positive attitudes toward green actions, uptake remains low. This research investigates the drivers of voluntary carbon offset (VCO) purchases in e-commerce, using a large sample of real transactional data from a pioneering European retailer. Findings reveal that consumers are highly cost-sensitive, evaluating offset costs relative to transaction values. This raises a critical marketing question: how should VCOs be priced? We propose two approaches—emphasizing either social or environmental impact—and provide pricing recommendations. A follow-up lab study reveals that price influences carbon offset decisions beyond cost savings by activating guilt, which drives purchase intent. This study advances sustainable marketing and VCO research, offering actionable insights for scholars and retailers alike.