Pro-environmental consumption: effects on subjective well-being as a proxy for utility

Abstract

This paper contributes to the growing empirical evidence that engaging in pro environmental consumption has positive consequences on satisfaction with life as well as strengthens the idea that this type of behaviour is subject to systematic deviations from utility-maximizing choices that consumers underestimate extra utility from sustainable consumption. Moreover, the results imply that pro-environmental consumption preferences for the products with a higher environmental efficiency has a stronger effect on subjective well-being compared to the sustainable choices characterized as to avoid or less frequently engage in consumption decisions having negative ecological externalities. The findings were obtained through using three waves (2014, 2019 and 2020) of Aspects of Daily Life dataset, an annual multipurpose sample survey in Italy; however, they are consistent with the results of similar studies in other countries including Germany, China, and the United States, and therefore, as Luechinger (2009) suggests in an equivalent situation in a different context, this approach may also be transferred to other countries.