Arbeitspapier
Is Social Responsibility a Normal Good?
We investigate whether growth in consumer income causes an increased willingness to pay to mitigate negative externalities from consumption. Correlational field evidence suggests a positive relationship between income and social responsibility. To investigate a causal link, we conduct a laboratory market experiment in which firms and consumers can exchange products that differ in the degree to which they mitigate negative external impacts at the expense of higher production costs. Our treatments exogenously vary consumers’ incomes. Our experimental results reveal that growth in consumer income causes an increase in the share of socially responsible consumption in the laboratory. Such a causal relationship is significant from a policy perspective, as it implies that some negative external impacts of consumption activity can be mitigated as societies experience economic growth.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 7263
- Classification
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Wirtschaft
Design of Experiments: Laboratory, Group Behavior
Personal Income, Wealth, and Their Distributions
Externalities
Corporate Culture; Diversity; Social Responsibility
- Subject
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social responsibility
income growth
normal goods
laboratory experiment
market game
- Event
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Geistige Schöpfung
- (who)
-
Bartling, Björn
Valero, Vanessa
Weber, Roberto A.
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
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2018
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bartling, Björn
- Valero, Vanessa
- Weber, Roberto A.
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2018
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