Green Inequality: The Role of Financial Considerations in Receiving Green Credit

Green Inequality: The Role of Financial Considerations in Receiving Green Credit

Abstract: Consumers engage in various environmentally friendly (i.e., green) behaviors, many of which can earn them positive social recognition for being motivated by green values (i.e., green credit). While green credit is a significant motivator for public engagement in such behaviors, previous research has not fully explored the factors contributing to consumers receiving green credit for their actions. Do all green behaviors earn equal green credit for all consumers? We argue that the extent to which consumers receive green credit for green behaviors depends on (1) the frugality of the behavior and (2) their income level. We hypothesize that low-income consumers’ frugal green behaviors (e.g., repairing) receives significantly less green credit compared to that of high-income consumers engaging in the same behavior. This occurs because observers attribute different motivations depending on the actor’s financial status.

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