The Economic Potential to Support Sustainability through Household Consumption Choices

Abstract

The amount of money that could potentially be saved by households by reducing unnecessary consumption and directed to sustainable investments without compromising the social needs in Finnish households was studied. The study was conducted by using statistical data and by creating short-and long-term scenarios to assess potential savings resulting from changes in household behaviour. According to the results, a Finnish household could save and subsequently allocate an average of €3400-€15,000 annually to invest in sustainability. The greatest potential for preventing unnecessary consumption is related to (1) food and drinks, and (2) transportation. In the long-term scenario, reducing expenditures in the category of housing also provides opportunities for high savings. A significant share of the saving created by sustainable patterns of consumption can be directed for example to investments in renewable energy.

Increasing positive climate impact by combining anti‐consumption and consumption changes with impact investing

“…Table 2 presents potential for primary impacts for Finnish households for one anti‐consumed € in different sectors and total anti‐consumption potential based on the moderate scenario presented by Claudelin et al (2018).…”

“…There are several options related to these investments, and examples of investment options and related assumptions for the cases studied are presented in Table 3. Claudelin et al (2018).…”

“…However, these impacts are dependent on time and possible system changes. Claudelin et al (2018) calculated the potential for Finnish households to reduce consumption with moderate changes in lifestyles. According to their calculations, households could annually, on average, save €150 from housing costs, €1000 from mobility, €1500 from food purchases, and €450 from goods and services.…”

“…In developed countries, a significant share of consumption can be regarded as nonessential and could be reduced without compromising basic human needs. Claudelin et al (2018) show that the Finnish households could, with rather simple changes, save total of €9 billion annually by reducing unessential consumption.…”

“…Reducing buying furnishing and household equipment 0.4 kgCO 2 eq/€ Average annual consumption: 1062 €/a 10% reduction Claudelin et al (2018) and Seppälä et al…”