A major barrier to transitions to environmental sustainability is that consumers lack information about the full environmental footprints of their purchases. Sellers' incentives do not support reducing the footprints unless customers have such information and are willing to act on it. We explore the potential of modern information technology to lower this barrier by enabling firms to inform customers of products' environmental footprints at the point of purchase and easily offset consumers' contributions through bundled purchases of carbon offsets. Using online stated choice experiments, we evaluated the effectiveness of several inexpensive features that firms in four industries could implement with existing online user interfaces for consumers. These examples illustrate the potential for firms to lower their overall carbon footprints while improving customer satisfaction by lowering the "soft costs" to consumers of proenvironmental choices. Opportunities such as these likely exist wherever firms possess environmentally relevant data not accessible to consumers or when transaction costs make proenvironmental action difficult.carbon footprint | online experiments | carbon offset | ecolabels
Consumers who wish to consider product attributes like carbon footprints in their purchasing decisions are often blocked from meaningful action by a lack of information. We conducted a randomized controlled trial at a grocery store to evaluate the effects of providing such product attribute and carbon footprint information via augmented reality (AR) displays on bottled water and breakfast cereal, two frequently purchased goods. Using an AR smartphone app that combines comparative and detailed product information into personalized data and recommendations, a 23% reduction in carbon footprint was found for bottled water, and nonsignificant reductions for breakfast cereal. However, AR informed choice lead to healthier cereal purchases with an average of 32% less sugar, 15% less fat, and 9.8% less sodium. This research suggests that AR techniques can help facilitate complex decision-making and lead to better choices.
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