Sustainable Consumption Through Innovation

By Noan Kroonenberg

Environmental impacts in consequence of human activities mainly lead back to consumption. The overall research aim of this study is to estimate how sustainable consumption can be increased through sustainable innovation by mainly considering pro-environmental aspects. Relating to this, several objectives are pursued as the following examples show. For instants, the study aims to regard efficiency, consistency, and sufficiency as three strategic principles; provide a holistic understanding of sustainable consumption by considering micro and macro economic as well as behavioural economic findings; examine how sustainable innovation connects to the development of sustainable products; and consider product sustainability information as a currently promising innovation.

• Language: English
• Publisher: Noan Kroonenberg
• Release date: Jan 9, 2019
• ISBN: 9781386319429

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Noan Kroonenberg

Sustainable Consumption Through Innovation

A Study on How to Lower the Environmental Footprint Through Sustainable Innovation

Copyright © 2019 by Noan Kroonenberg

All rights reserved. This book or any portion thereof

may not be reproduced or used in any manner whatsoever

without the express written permission of the publisher

except for the use of brief quotations in a book review.

Noan Kroonenberg

c/o AutorenServices.de

Birkenallee 24

36037 Fulda

Germany

Table of Contents

List of Figures

1 Introduction

1.1 Research Background and Significance of the Study

1.2 Research Aim and Objectives

1.3 Overview of the Research Methodology

1.4 Structure of the Study

2 Sustainable Consumption

2.1 Approaches and Motivation

2.2 Micro and Macro Economic Perspectives on Consumption

2.3 Behavioural Economic Perspective on Consumption3

2.3.1 Models of Choice

2.3.2 Intention-Behaviour Gap

2.3.3 Other Behavioural Economic Influences on the Buying Decision

3 Sustainable Innovation with Regard to Consumption

3.1 Properties of Innovation

3.2 Development of Sustainable Products with Regard to Innovation

3.3 Diffusion of Innovation

3.4 Innovation and Rebound Effects

3.5 Product Sustainability Information as an Innovation

4 Sustainable Consumption Through Sustainable Innovation

5 Conclusions, Outlook, and Recommendations

6 References

List of Figures

Figure 1: Indifference curves I₁-I₃ and the utility function U(x) for product x and y

Figure 2: Location change of the indifference curve due to a change in preferences

Figure 3: Location change of the indifference curve due to a change in pice

Figure 4: Location change of the indifference curve due to a political imposed limitation

Figure 5: Total model of consumer choice

Figure 6: Partial model of Theory of Planned Behaviour

Figure 7: Development of a ‘gap’ between ethical consumption and actual behaviour

1  Introduction

1.1  Research Background and Significance of the Study

Environmental impacts in consequence of human activities mainly lead back to consumption. Lowering the environmental footprint that is connected to consumption contributes to sustainable development and can be to large parts enabled through innovative measures. In this regard, sustainable consumption is shaped by innovation, and its role for the future is pathbreaking as well as manifold. Scientific literature is available in fields of economic analysis of consumption and innovation management. Yet, sustainable consumption through sustainable innovation is scarcely addressed in scientific literature. This includes, for example, limited publications about product sustainability information as a currently promising approach. In consequence, this study reacts to the gaps in scientific literature that exist in these fields.

Sustainable consumption is analysed under several different perspectives (e.g. Goldsmith 2015; Seyfang 2009; Herring and Sorrell 2009; Langen 2013; Genus 2016). Goldsmith (2015) examines the social influence on sustainable consumption by including the role of social media. Seyfang (2009) considers different aspects for sustainable consumption, such as eco-housing, organic food systems, and complementary currencies. An improvement in energy efficiency may increase energy consumption, which acts contrary to sustainable consumption as Herring and Sorrell (2009) examine. However, these authors do not encompass sustainable consumption holistically, e.g. either by excluding different types of products or by not considering the variety of influencing factors on buying decisions, such as awareness for sustainable consumer behaviour. Langen (2013) analyses influencing factors on private consumption of coffee. Ethical choices are examined in terms of social and environmental aspects. Yet, behavioural economic influences and the intention-behaviour gap are not considered in depth. Since the study of Langen (2013) focuses on the private consumption of coffee, it is limited with respect to other products as well. For example, rebound effects that relate to other products are not regarded. Genus (2016) considers sustainable consumption through design, innovation, and practice, but limitations exist with regard to micro and macro economic as well as behavioural economic examinations. Further, sustainable innovation, the design of sustainable products as well as the application of product sustainability information as an innovative approach are not analysed. In this regard, the current study balances out the shortcomings that are shown above. A more comprehensive perspective on sustainable consumption is provided, for example, by:

regarding efficiency, consistency, and sufficiency as three strategic principles (Bartelmus 2008);

considering six product categories (Rubik and Frankl 2005; Rubik 2015);

elaborating on behavioural economic influences (Michaels and Powell 2017; Dawnay and Shah 2005; Dolan et al. 2010);

analyzing micro and macro economic considerations and describing different approaches to increase the consumption of sustainable products (Samadi et al. 2016); and

considering several steps that lead to the intention-behaviour gap (Carrington et al. 2012).

Academic research is limited with regard to behavioural economic influences on sustainable decision making. Yet, particularly relevant principles that can encourage sustainable behaviour, such as sustainable consumption are compiled by Dawnay and Shah (2005) as well as by Dolan et al. (2010). Research in the fields of behavioural economics supports the theory behind these principles; however, gaps in the literature exist with regard to the application of these principles (Dawnay and Shah 2005). Thereby, it is unsolved what relevance needs to be considered for each of the principle when sustainable measures are applied. Further research needs to examined how the principles interact and how they can be implemented most effectively.

Moreover, sustainable consumption is studied not only by focusing on individuals, but also by considering the collective (Caruana et al. 2015), such as households (Belz and Peattie 2009) or consumption communities (Bekin