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SUMMER 2011 VOLUME 45, NUMBER 2 329
BITS, BRIEFS AND APPLICATIONS
MARLA B. ROYNE, MARIAN LEVY,
AND JENNIFER MARTINEZ
The Public Health Implications of Consumers’
Environmental Concern and Their Willingness
to Pay for an Eco-Friendly Product
Environmental concern has been an important topic for more than
40 years and has recently become even more critical with today’s
concerns about creating a sustainable and healthy environment. This
research examines factors affecting an individual’s willingness to pay
more for an environmentally friendly product. Our results show
that willingness to pay more differs across demographic groups.
We also find that individuals who rate concern for waste as highly
important are willing to spend more money on an eco-friendly product.
Consequently, our findings provide insight into the development of
appropriate educational strategies for different consumer groups to
encourage consumers to purchase eco-friendly products, with a goal
of creating a healthier environment for current and future generations.
The challenge of healthier communities begins with environmental
concern and collective adoption of eco-friendly behaviors, because the
choices consumers make with regard to the environment influence the
health and quality of life for both current and future generations. In
general terms, environmental concern is a “concept that can refer to
feelings [consumers have] about many different green issues” (Zimmer,
Stafford, and Stafford 1994, p. 64). The topic became an important one in
1962 when Rachel Carson’s Silent Spring was published and has recently
become even more critical with today’s concerns about creating a sus-
tainable and healthy environment. Trends show a remarkable increase in
consumer worry about environmental problems (e.g., Gallup Poll 2009)
Marla B. Royne (mstaffrd@memphis.edu) is Professor and Chair in the Department of
Marketing & Supply Chain Management, Fogelman College of Business & Economics, Marian
Levy (mlevy@memphis.edu) is Associate Professor and Director, Master of Public Health Program,
and Jennifer Martinez (jmartine@memphis.edu) is a doctoral student in the Department of Marketing
& Supply Chain Management, Fogelman College of Business & Economics, all at the University
of Memphis.
The Journal of Consumer Affairs, Summer 2011: 329–343
ISSN 0022-0078
Copyright 2011 by The American Council on Consumer Interests
330 THE JOURNAL OF CONSUMER AFFAIRS
and continued support for alternative forms of energy generation (Pew
2010) and other sustainable initiatives. Interest in environmental issues
has also triggered rapid growth and enrollment in environmental courses
offered in colleges and universities (Fuller 2010). In the corporate world,
environmentalism has moved to the boardroom (Hanas 2007), while at the
lay level, magazines such as Popular Mechanics feature articles related to
global warming (http://www.popularmechanics.com 2010). In addition,
a recent blog points out that popular media incorporate environmental
messages into their programming: “The powers that be at NBC Univer-
sal started going green and making the environment a priority, using a
tactic called ‘behavior placement’ to weave subtle eco-friendly messages
into the scripts of some of the network’s most popular daytime and prime
time programs” (http://www.environment.about.com 2010).
Although the environmental movement can be traced back to the nine-
teenth century, the modern iteration of environmental concern as an issue
of critical interest began about four decades ago. Most recently, this
concern has reappeared in the academic, scientific and popular press in
terms of issues related to sustainability and renewable resources (e.g.,
Gallup 2009; Pew 2009, 2010). For example, a major initiative in the
National Science Foundation’s proposed 2011 budget is expanded sup-
port for climate research activities, designed to address challenges in
sustainability, energy research and education (http://www.nsf.gov 2010).
The latest approach to understanding and researching sustainability and
environmental concepts spans several disciplines including marketing,
public policy and public health, among others.
In particular, sustainability is recognized as a major public health issue
of the twenty-first century (American Public Health Association 2007).
Health concerns are a primary component of overall environmental con-
cern because physical surroundings (air quality, water protection and
even the availability of health care alternatives) directly affect human
survival and quality of life (Zimmer, Stafford, and Stafford 1994), and
individuals who practice environmental behaviors will promote healthier
communities, via improved quality of air, water and physical health (Patz
and Olson 2006). Consequently, understanding environmental concern
among consumers can have an important influence on public health.
The Environmental Consumer
Although the majority of US consumers indicate they are “envi-
ronmentalists” (Osterhus 1997; Ottman 2004; Shrum, McCarty, and
Lowrey 1995), this “mindset” does not necessarily translate into
SUMMER 2011 VOLUME 45, NUMBER 2 331
pro-environmental behavior (Kaiser, W¨olfing, and Fuhrer 1999) indicat-
ing an attitude–behavior gap. It is possible that this gap is a result of
individuals not understanding the personal benefits, including the health
advantages of engaging in such behaviors. That is, individuals may not
understand how closely the environment and health are intertwined. Thus,
it stands to reason that programs which bolster consumer knowledge and
encourage a belief in consumers that their actions can positively affect
the environment, their own health, as well as their own well-being, might
help to close this gap.
Not surprisingly, existing research has also found that some consumers
are willing to pay more for green products, while other consumers are
not (Laroche, Bergeron, and Barbaro-Forleo 2001; Loureiro, McCluskey,
and Mittelhammer 2002; Vlosky, Ozanne, and Fontenot 1999). In their
study of product labeling, D’Souza et al (2007) found that while some
consumers are willing to pay more for an eco-friendly product, these
consumers are reluctant to compromise on product quality. One general
finding is that consumers who perceive a benefit that exceeds the extra
cost of purchasing green products are willing to pay more for that
product (Abdul-Muhmin 2007; Moon and Balasubramanian 2003), but
these studies assume that the consumer has full knowledge about the
product’s benefits and its costs. For instance, fresh fruit and vegetables
are more expensive than processed foods, but are known to reduce the
risk of colorectal, breast and other cancers, as well as protect against other
chronic conditions such as diabetes and cardiovascular disease (N¨othlings
et al. 2008). But these health benefits may not be known to many
consumers. Existing research on food products provides evidence of this
cost-benefit disparity of knowledge (Grantham 2007; Kaneko and Chern
2005; Pew 2006). Moreover, other research indicates that environmental
claims are often misunderstood (Maronick and Andrews 1999).
Initial research to understand consumer perceptions of environmen-
tal concern (Anderson and Cunningham 1972) and ecological concern
(Kinnear, Taylor, and Ahmed 1974) began in the 1970s. By the 1980s,
increased efforts began to better understand and profile the environmen-
tally concerned consumer. For example, Manzo and Weinstein (1987)
studied the difference in levels of environmental concern between active
and nonactive members of the Sierra Club. Results suggested that the
more consumers are involved and aware of environmental issues and
the consequences of their behavior, the greater the degree of significant
behavioral commitment to environmental protection.
Other research examined which demographic variables might be cor-
related with varying levels of environmental concern (Ellen, Wiener, and
332 THE JOURNAL OF CONSUMER AFFAIRS
Cobb-Walgren 1991; Newell and Green 1997; Samdahl and Robertson
1989). Much of the evidence suggested that environmentally concerned
consumers were generally younger, more affluent, more educated,
more urban and more politically liberal than other consumers (Aaker
and Bagozzi, 1982; Anderson and Cunningham 1972; Antil 1984;
Leonard-Barton 1981; Samdahl and Robertson 1989; Shama 1985).
Although this research stream developed a general profile of the typ-
ical environmentalist, it failed to examine different types of environ-
mental concern, despite the belief that environmental concern is a
multifaceted concept (Drumwright 1994; Straughan and Roberts 1999;
Zimmer, Stafford, and Stafford 1994). Because it is likely that different
demographic groups may be willing to pay more or less for an envi-
ronmentally friendly product, understanding these differences can help
ensure that appropriate and effective green messages are developed with
the goal of encouraging eco-friendly purchases by promoting sustainabil-
ity and its positive effects on health and well-being. In short, reaching
different consumer groups with the appropriate strategies may translate
into more positive eco-friendly behaviors (i.e., paying more for an eco-
friendly products) resulting in a better living environment and improved
health for current and future generations.
Three popular and well-used demographic grouping variables are age,
gender and ethnicity. Age is a simple, yet critical variable, because age
allows for an understanding of how wants and needs change as an individ-
ual matures. Specifically, Hansman and Schutjens (1993) found that age
predicts changes in attitudes and behavior. do Paco and Raposa (2009)
noted that the existing research on age and environmental attitudes has
been inconsistent and suggest that additional research be conducted in
this area.
Gender has been studied as a predictor of attitudes for many years
based on the notion that males and females possess distinct characteris-
tics, and green research has suggested that females might be more envi-
ronmentally concerned than males (Lee 2009; Mostafa 2007; Schwartz
and Miller 1991). Interest has also been demonstrated in revealing differ-
ences in environmental concern across ethnic groups (Baugh 1991; Ellen,
Wiener, and Cobb-Walgren 1991; Jones and Carter 1994; Newell and
Green 1997). Ellen, Wiener, and Cobb-Walgren (1991) failed to detect
differences in environmental concern across African Americans and Cau-
casians. Newell and Green (1997) reported that White consumers were
more concerned with the overall environment, but also noted that early
research failed to account for age or income differences within the groups
studied. Their own research found that the significant differences between
SUMMER 2011 VOLUME 45, NUMBER 2 333
White and Black consumers were observed only at the lower income
and educational levels. Williams (1989) claimed that younger individuals
within a racial category are well-versed about the environment as com-
pared to older individuals in the same racial group. Moreover, Ellen,
Wiener, and Cobb-Walgren (1991) noted the need to acknowledge dif-
ferent racial segments when communicating about the environment.
Because some consumers are willing to spend more than others to
protect the environment, it is logical to assume that these more willing
consumers may take a more active role in the environment. Hence, if we
were able to identify the characteristics of the consumers that are willing
to spend more, then appropriate messages can be communicated to them.
Therefore, we sought to determine whether willingness to pay more
differed by demographic characteristics. Hence, we pose the following
research question:
RQ1: Is a particular demographic group willing to pay more for an eco-friendly
product, and if so, which one(s)?
Research centered on environmental concern has focused largely on
segmentation, based on individual and group perceptions and behaviors
regarding general environmental concern (Diamantopoulos et al. 2003;
do Paco and Raposo 2009; D’Souza et al. 2007; Lee 2009; Loureiro,
McCluskey, and Mittelhammer 2002; Newell and Green 1997; Straughan
and Roberts 1999). Unfortunately, research surrounding environmental
concern tends to consider each major component in a vacuum (Allen,
Davis, and Soskin 1993; Harrell and McConocha 1992; Morris, Hastak,
and Mazis 1995; Schwepker and Cornwell 1991) as opposed to taking a
comprehensive view to determine the relative importance of each com-
ponent of concern. Moreover, the relative importance of each type of
environmental issue and how it influences eco-friendly behaviors have
not yet been explored.
In evaluating the elements of environmental concern in a more compre-
hensive manner, we can identify salient aspects for promoting eco-issues
to consumers. When consumers adopt new behaviors that conserve the
earth’s resources (e.g., buying an eco-friendly product that costs more),
their health and quality of life will greatly benefit. To help promote this
potential behavior, it is useful to determine which aspects of the environ-
ment are perceived as more important to different groups. Stisser (1994)
believed it is critical to understand how important the environment is to
consumers relative to the environmental benefits they are seeking. Fur-
thermore, by identifying these key environmental issues and assessing
334 THE JOURNAL OF CONSUMER AFFAIRS
the effect of these on the consumer’s choice to purchase an eco-friendly
product, we are following the process of behavior-driven researchers, the
approach advocated by Bone, France, and Aikin (2009) in their commen-
tary on health literacy.
To examine the different elements of environmental concern, we utilize
the seven dimensions of concern identified by Zimmer, Stafford, and
Stafford (1994). This allowed us to determine whether the level of
importance of certain types of environmental concern is significantly
related to the willingness to spend more on an eco-friendly product.
Thus, we examine the following research question:
RQ2: Is the importance level of a specific type of environmental concern related
to how much more an individual is willing to pay for an eco-friendly product?
DATA COLLECTION
To answer our research questions, we sought a sample of consumers
who have in some manner demonstrated at least a minimal interest in
environmentalism. Hence, we collected data at Sustainable Technologies
Awareness Day (STAD) at a major southeastern urban university. STAD
was held to encourage environmental awareness, inquiry and activism
among students, faculty and staff; it featured more than forty eco-friendly
initiatives at the university, in the community and by industry partners.
These initiatives focused on recycling and other actions that reduce health
risks, improve air quality and reduce costs.
During the event, attendees were asked to complete a brief survey that
included the seven different types of environmental concern identified by
Zimmer, Stafford, and Stafford (1994): concern for waste, concern for
wildlife, concern for the biosphere, concern for popular issues, concern
for health, concern for energy and concern for environmental technology.
According to Zimmer, Stafford, and Stafford, these seven items comprise
an overall measure of environmental concern. Examples of each concern
type were provided to respondents (see Table 1 for a description of the
seven types of concern). Respondents were asked to rate their perceived
importance of each of the seven types of environmental concern on a
scale of 1 to 5, with 5 being most important. The reliability coefficient for
the seven items as an overall measure of environmental concern was .80,
demonstrating acceptable reliability. In addition, we asked respondents
(in percentage terms) how much more they would be willing to pay
for an eco-friendly product as compared to a non-eco-friendly product.
They also had the option of indicating that they were unwilling to spend
SUMMER 2011 VOLUME 45, NUMBER 2 335
TABLE 1
Issues and Descriptions
Concern for Waste Concern for reducing and managing waste. Examples include
waste control, waste disposal/reduction, landfills, and recycling
Concern for Wildlife Concern for preserving animals and their habitats. Examples
include species preservation, wilderness protection, trade in
rare species/poaching and deforestation
Concern for the Biosphere Concern for the earth and the air. Examples include ozone
depletion and the greenhouse effect
Concern for Popular lssues Concern for popular issues with recent visibility in the popular
press. Examples include overpopulation, citizen participation,
erosion and climate change.
Concern for Health Concern for human survival and quality of life. Examples include
human health, water protection and air pollution.
Concern for Energy Concern for energy sources and consumption. Examples include
clean energy, alternative energy sources, energy conservation,
and automobiles
Concern for Environmental
Technology
Concern for technologies that can affect the environment
proactively. Examples include biotechnology, safe technology
and community economic development
more on such a product. In addition, we asked respondents their age,
gender and ethnicity. Gender and ethnicity were categorical variables,
while actual age was requested.
Attendees who completed the survey and visited a minimum of three
exhibitors were treated to a healthy lunch. A total of 337 participants
completed the survey. About 72% were students, 21% were faculty/staff
and 7% were campus visitors; 57% were female and 43% were male.
About 42% were over 30 and the average age was 29.2 years. About 51%
were Caucasian, 35% were African American, 6% were Asian, and 3%
were Hispanic. The rest of the sample identified themselves as “other.”
Analysis and Results
Although we used a convenience sample of students, faculty and com-
munity members at one university on a day dedicated to sustainability,
we actually view this limited sample as a positive source of data because
all respondents had exhibited some form of pro-environmental behavior.
As shown in Table 2, the three concerns rated most highly were health
(mean = 4.51), energy (mean = 4.48) and waste (mean = 4.21). In addi-
tion, 91.2% of respondents indicated that they were willing to pay more
money for products that are eco-friendly, although the percentage listed
ranged from 1% to 100%. The most frequent response to this open-ended
question was 10%; that is, 26.4% of the respondents indicated that they
336 THE JOURNAL OF CONSUMER AFFAIRS
TABLE 2
Overall Means and Standard Deviations
Issue Mean SD
Waste 4.21 0.917
Wildlife 4.13 0.961
Biosphere 3.99 1.007
Popular issues 3.92 1.017
Health 4.51 0.746
Energy 4.48 0.750
Environmental technology 4.02 0.983
were willing to pay 10% more for an eco-friendly product. About 49%
were willing to pay 10% more or less. However, 8.8% were unwilling
to spend any more money on an eco-friendly product.
To answer Research Questions 1 and 2, data were analyzed via the
General Linear Model in SPSS. The independent variables included
gender and ethnicity as categorical variables, with age and the seven
types of environmental concern as continuous variables. The interac-
tion effect between gender and ethnicity (the two categorical variables)
was also included in the model. The single dependent variable was the
additional percent individuals were willing to pay for an eco-friendly
product. The overall model was significant (F = 2.15, p = .006) and
univariate F-tests indicated that age (F = 4.14, p = .04), ethnicity (F =
3.51, p = .01) and waste (F = 5.81, p = .02) were all significant. The
gender × ethnicity interaction was not significant (F = .83, p = .51).
The significant effect for age indicates that consumer age has an
influence on how much more a consumer is willing to pay for an
environmentally friendly product. The parameter estimate for age was
−.197 (t = −2.035, p = .04), indicating that younger respondents are
willing to pay more than their older counterparts for an eco-friendly
product, a finding consistent with much of the work that profiles the
environmentally concerned consumer.
For ethnicity, the group that categorized themselves as “Other” was
willing to spend the most (28.85%), with African Americans coming in
second (22.66%). Pairwise comparisons indicate that both African Amer-
ican and Others were willing to spend significantly more than Caucasians
(14.61%; p < .01 and p < .05, respectively). However, because there
were small sample sizes for three of the ethnic groups (Asian Americans,
Hispanics and Others), these results should be regarded with caution.
Nevertheless, these results do indicate a positive response for Research
Question 1—that certain demographic groups are willing to pay more for
SUMMER 2011 VOLUME 45, NUMBER 2 337
TABLE 3
Univariate F-Tests: Percentage More Willing to Pay
F-Test p-Value
Gender 1.21 .27
Ethnicity 3.51 .01
Age 4.14 .04
Gender × Ethnicity 0.83 .51
Waste 5.81 .02
Wildlife 0.11 .74
Biosphere 0.70 .41
Popular issues 0.05 .82
Health 0.05 .82
Energy 0.00 .97
Environmental technology 1.50 .22
an eco-friendly product—and our findings provide some insight into that
groups.
As indicated in Table 3, only one type of environmental concern was
significantly related to the amount an individual was willing to pay: con-
cern for waste (β = 4.07, t = 2.41, p = .02). Hence, our results suggest
that those individuals who perceive waste as highly important are more
likely to be associated with a willingness to pay more for a product that
is environmentally friendly.
DISCUSSION AND IMPLICATIONS
Because our final sample resulted in small cell sizes in the ethnicity
category and because we only examined three demographic variables,
generalizations from our findings must be drawn with caution. However,
our findings do offer insight into perceptions of environmental concern
and willingness to pay for an eco-friendly product.
Given the significant difference of just one type of concern—waste—as
an influencer of paying more for an environmentally friendly prod-
uct, this research reinforces the notion of environmental concern as a
multifaceted concept. Moreover, the presence of significant differences
based on different demographic characteristics suggests that some of the
widely held beliefs about environmental concern may be inaccurate or
incomplete.
For ethnicity, we found that African Americans are willing to spend
significantly more than Caucasians on an eco-friendly product and Cau-
casians are willing to spend the least. These findings are consistent with
the viewpoint of Newell and Green (1997), who dispelled the belief
338 THE JOURNAL OF CONSUMER AFFAIRS
that African Americans are apathetic toward the environment. Thus, our
results reinforce the importance of avoiding stereotypes as well as updat-
ing the profile of the environmentally concerned consumer to ensure that
appropriate messages are communicated.
Specifically, these ethnic differences suggest that communicating sus-
tainable practices to Caucasians should possibly emphasize a potential
for minimal expense (e.g., low minimum purchase requirement, short
contract lengths) or long-term financial incentives (energy-efficient appli-
ances). At the same time, it may be important to educate these other
ethnic groups on why it is important to invest in eco-friendly products.
However, because of the noted small cell sizes from the ethnicity analy-
sis, these implications must be considered as suggestive only. Regardless,
as our nation’s population is becoming more diverse, the public health
community acknowledges the need to develop communication and health
messages that resonate with ethnic groups, motivate engagement and
support wise consumer choices. As noted in Healthy People (2010), a
comprehensive set of objectives to promote America’s health, a tremen-
dous disparity exists in morbidity and mortality of ethnic, underserved
populations, compared with Caucasians. A major goal and public health
priority is to promote health equity for minority groups (US Department
of Health and Human Services 2000).
The results for age indicate that younger individuals are willing to
spend significantly more money than their older counterparts for an
eco-friendly product. These findings suggest that educational messages
targeted toward older adults may be necessary to encourage purchase
of such products. The importance of these educational messages is
underscored by the fact that the elderly are particularly vulnerable to
environmental issues related to motor vehicle air pollution and global cli-
mate change (US Climate Change Program 2008), because such changes
due to greenhouse gases are believed to produce increased health risks
from extreme weather events (e.g., flooding), extreme heat, infectious dis-
eases, water contamination and vector-borne illnesses (Ebi et al. 2006;
Kjellstrom et al. 2007). Moreover, physical limitations resulting from air
pollution and climate change reduce mobility and recommended physi-
cal activity that sustains health. Other affected health behaviors include
dietary practices, which decline due to physical changes, such as reduc-
tions in taste perception, olfactory sense and dentition. In sum, it is critical
to educate the older population on why it is important to invest in prod-
ucts that can help the environment. This educational message must be
presented in “plain language” to ensure that the targeted consumer (in
this case, older adults) can understand the relevance of this information
SUMMER 2011 VOLUME 45, NUMBER 2 339
to their own health status and engage in the appropriate behavior based
on that understanding (Bone, France and Aikin 2009).
Our findings also suggest that respondents who are particularly con-
cerned with waste may be more likely to spend more money on an
environmentally friendly product. Therefore, a reduced usage of energy
via simpler packaging and recycling innovations may be supported by
a group of consumers. This decrease in energy consumption translates
to decreased fossil fuel combustion and, in turn, reduced atmospheric
release of greenhouse gases, such as carbon dioxide, methane and ozone.
Individuals with cardiovascular and respiratory illnesses (e.g., asthma)
are especially harmed by increases in ozone air production. Thus, more
expensive green products may fare better when targeted toward those
individuals who are more concerned with waste-related issues. Ideally,
products targeted to such groups should be recyclable or otherwise helpful
in reducing waste. Green products targeted to other demographic groups
may need to be less expensive.
However, green products are often more costly to manufacture than
less eco-friendly goods, and therefore, are simply more expensive for
consumers to purchase. As many manufacturers are required by govern-
ment entities (e.g., the Food and Drug Administration) to comply with
production and labeling guidelines for organic or sustainably produced
goods, one consideration is to educate consumers and, in particular, older
adults on the inherent costs that drive the price of green products higher
than nongreen products. One potential avenue is through community
information sessions sponsored by government agencies, a suggestion
made by Newell and Green (1997) in their work on environmental con-
cern. Educating consumers on why green products cost more as well as
the benefits of using green products, particularly where health benefits
are concerned (i.e., reduced factory emissions, pesticide-free agriculture),
may be helpful in closing the gap between consumers merely possess-
ing a pro-environmental attitude and extending that attitude to intentions
to adopt pro-environmental behaviors—in the case here, spending more
money on an environmentally friendly product. However, because our
research only examined willingness to pay for an eco-friendly prod-
uct and not behavior, this speculation needs to be examined in future
research.
Although a movement toward reducing the costs of these environmen-
tally friendly products might be helpful, it may not be realistic. Another
alternative is increased government subsidies for companies developing
eco-friendly products so that the cost to the consumer can be reduced. If
the ultimate universal goal is a sustainable environment with long-term
340 THE JOURNAL OF CONSUMER AFFAIRS
health benefits for all consumers, then collective effort among consumers
and businesses is critical.
In short, our research begins to understand who is willing to pay more
for an environmentally friendly product and what types of environmental
concern may motivate individuals to do so allowing for the development
of effective communications to different groups of consumers to educate
them on the benefits of purchasing these products. Addressing salient
needs is critical in moving from environmental concern to action, and
consumers need to play an active role in maintaining their environment
to protect their own community and personal health. By matching educa-
tional messages to individual and collective group concerns, as implied
by Ellen, Wiener, and Cobb-Walgren (1991), these messages can be based
on consumers’ innate susceptibilities as well as their individual perspec-
tives and concerns. That is, it is unlikely that one environmental campaign
encouraging the purchase of an eco-friendly product can be created to
appeal to a broad range of consumers. Yet the future vulnerability to the
health impacts of climate change depends on our capacity for collective
action.
The public health implications of climate change are both long term
and immediate. A long-term approach is needed to reverse the detrimen-
tal impact on global atmosphere and ecosystems. In this case, the use
of temporal framing (presenting a message with a specific time refer-
ence) may be an effective strategy in reaching consumers (Kees 2011).
However, there also exists an immediate task to communicate the need
for adopting eco-responsible lifestyles. We agree with Newell and Green
(1997) that government agencies must provide the critical information
to consumers and, in particular, those groups of consumers who may be
most affected by environmental-related problems. In addition, as noted
by Rotfeld (2011), it is important to base information and programs on
how people might actually use the information to change their behav-
iors. With our increasingly diverse population, it is clear that “one size
does not fit all.” Our research has provided some insight into how to
promote consumer education and eco-friendly actions. Moreover, we
must advocate for simultaneous shifts in community institutions and
policy to support individual behavior change. Changes in transporta-
tion, land use and housing policies are needed. Corporate incentives
to minimize greenhouse gas emissions and support production of alter-
nate energy would support eco-friendly consumer behaviors. Adopting
these strategies would be important steps to address the environmental
impact of global climate change and, ultimately, to protect consumer
health.
SUMMER 2011 VOLUME 45, NUMBER 2 341
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  • 1. SUMMER 2011 VOLUME 45, NUMBER 2 329 BITS, BRIEFS AND APPLICATIONS MARLA B. ROYNE, MARIAN LEVY, AND JENNIFER MARTINEZ The Public Health Implications of Consumers’ Environmental Concern and Their Willingness to Pay for an Eco-Friendly Product Environmental concern has been an important topic for more than 40 years and has recently become even more critical with today’s concerns about creating a sustainable and healthy environment. This research examines factors affecting an individual’s willingness to pay more for an environmentally friendly product. Our results show that willingness to pay more differs across demographic groups. We also find that individuals who rate concern for waste as highly important are willing to spend more money on an eco-friendly product. Consequently, our findings provide insight into the development of appropriate educational strategies for different consumer groups to encourage consumers to purchase eco-friendly products, with a goal of creating a healthier environment for current and future generations. The challenge of healthier communities begins with environmental concern and collective adoption of eco-friendly behaviors, because the choices consumers make with regard to the environment influence the health and quality of life for both current and future generations. In general terms, environmental concern is a “concept that can refer to feelings [consumers have] about many different green issues” (Zimmer, Stafford, and Stafford 1994, p. 64). The topic became an important one in 1962 when Rachel Carson’s Silent Spring was published and has recently become even more critical with today’s concerns about creating a sus- tainable and healthy environment. Trends show a remarkable increase in consumer worry about environmental problems (e.g., Gallup Poll 2009) Marla B. Royne (mstaffrd@memphis.edu) is Professor and Chair in the Department of Marketing & Supply Chain Management, Fogelman College of Business & Economics, Marian Levy (mlevy@memphis.edu) is Associate Professor and Director, Master of Public Health Program, and Jennifer Martinez (jmartine@memphis.edu) is a doctoral student in the Department of Marketing & Supply Chain Management, Fogelman College of Business & Economics, all at the University of Memphis. The Journal of Consumer Affairs, Summer 2011: 329–343 ISSN 0022-0078 Copyright 2011 by The American Council on Consumer Interests
  • 2. 330 THE JOURNAL OF CONSUMER AFFAIRS and continued support for alternative forms of energy generation (Pew 2010) and other sustainable initiatives. Interest in environmental issues has also triggered rapid growth and enrollment in environmental courses offered in colleges and universities (Fuller 2010). In the corporate world, environmentalism has moved to the boardroom (Hanas 2007), while at the lay level, magazines such as Popular Mechanics feature articles related to global warming (http://www.popularmechanics.com 2010). In addition, a recent blog points out that popular media incorporate environmental messages into their programming: “The powers that be at NBC Univer- sal started going green and making the environment a priority, using a tactic called ‘behavior placement’ to weave subtle eco-friendly messages into the scripts of some of the network’s most popular daytime and prime time programs” (http://www.environment.about.com 2010). Although the environmental movement can be traced back to the nine- teenth century, the modern iteration of environmental concern as an issue of critical interest began about four decades ago. Most recently, this concern has reappeared in the academic, scientific and popular press in terms of issues related to sustainability and renewable resources (e.g., Gallup 2009; Pew 2009, 2010). For example, a major initiative in the National Science Foundation’s proposed 2011 budget is expanded sup- port for climate research activities, designed to address challenges in sustainability, energy research and education (http://www.nsf.gov 2010). The latest approach to understanding and researching sustainability and environmental concepts spans several disciplines including marketing, public policy and public health, among others. In particular, sustainability is recognized as a major public health issue of the twenty-first century (American Public Health Association 2007). Health concerns are a primary component of overall environmental con- cern because physical surroundings (air quality, water protection and even the availability of health care alternatives) directly affect human survival and quality of life (Zimmer, Stafford, and Stafford 1994), and individuals who practice environmental behaviors will promote healthier communities, via improved quality of air, water and physical health (Patz and Olson 2006). Consequently, understanding environmental concern among consumers can have an important influence on public health. The Environmental Consumer Although the majority of US consumers indicate they are “envi- ronmentalists” (Osterhus 1997; Ottman 2004; Shrum, McCarty, and Lowrey 1995), this “mindset” does not necessarily translate into
  • 3. SUMMER 2011 VOLUME 45, NUMBER 2 331 pro-environmental behavior (Kaiser, W¨olfing, and Fuhrer 1999) indicat- ing an attitude–behavior gap. It is possible that this gap is a result of individuals not understanding the personal benefits, including the health advantages of engaging in such behaviors. That is, individuals may not understand how closely the environment and health are intertwined. Thus, it stands to reason that programs which bolster consumer knowledge and encourage a belief in consumers that their actions can positively affect the environment, their own health, as well as their own well-being, might help to close this gap. Not surprisingly, existing research has also found that some consumers are willing to pay more for green products, while other consumers are not (Laroche, Bergeron, and Barbaro-Forleo 2001; Loureiro, McCluskey, and Mittelhammer 2002; Vlosky, Ozanne, and Fontenot 1999). In their study of product labeling, D’Souza et al (2007) found that while some consumers are willing to pay more for an eco-friendly product, these consumers are reluctant to compromise on product quality. One general finding is that consumers who perceive a benefit that exceeds the extra cost of purchasing green products are willing to pay more for that product (Abdul-Muhmin 2007; Moon and Balasubramanian 2003), but these studies assume that the consumer has full knowledge about the product’s benefits and its costs. For instance, fresh fruit and vegetables are more expensive than processed foods, but are known to reduce the risk of colorectal, breast and other cancers, as well as protect against other chronic conditions such as diabetes and cardiovascular disease (N¨othlings et al. 2008). But these health benefits may not be known to many consumers. Existing research on food products provides evidence of this cost-benefit disparity of knowledge (Grantham 2007; Kaneko and Chern 2005; Pew 2006). Moreover, other research indicates that environmental claims are often misunderstood (Maronick and Andrews 1999). Initial research to understand consumer perceptions of environmen- tal concern (Anderson and Cunningham 1972) and ecological concern (Kinnear, Taylor, and Ahmed 1974) began in the 1970s. By the 1980s, increased efforts began to better understand and profile the environmen- tally concerned consumer. For example, Manzo and Weinstein (1987) studied the difference in levels of environmental concern between active and nonactive members of the Sierra Club. Results suggested that the more consumers are involved and aware of environmental issues and the consequences of their behavior, the greater the degree of significant behavioral commitment to environmental protection. Other research examined which demographic variables might be cor- related with varying levels of environmental concern (Ellen, Wiener, and
  • 4. 332 THE JOURNAL OF CONSUMER AFFAIRS Cobb-Walgren 1991; Newell and Green 1997; Samdahl and Robertson 1989). Much of the evidence suggested that environmentally concerned consumers were generally younger, more affluent, more educated, more urban and more politically liberal than other consumers (Aaker and Bagozzi, 1982; Anderson and Cunningham 1972; Antil 1984; Leonard-Barton 1981; Samdahl and Robertson 1989; Shama 1985). Although this research stream developed a general profile of the typ- ical environmentalist, it failed to examine different types of environ- mental concern, despite the belief that environmental concern is a multifaceted concept (Drumwright 1994; Straughan and Roberts 1999; Zimmer, Stafford, and Stafford 1994). Because it is likely that different demographic groups may be willing to pay more or less for an envi- ronmentally friendly product, understanding these differences can help ensure that appropriate and effective green messages are developed with the goal of encouraging eco-friendly purchases by promoting sustainabil- ity and its positive effects on health and well-being. In short, reaching different consumer groups with the appropriate strategies may translate into more positive eco-friendly behaviors (i.e., paying more for an eco- friendly products) resulting in a better living environment and improved health for current and future generations. Three popular and well-used demographic grouping variables are age, gender and ethnicity. Age is a simple, yet critical variable, because age allows for an understanding of how wants and needs change as an individ- ual matures. Specifically, Hansman and Schutjens (1993) found that age predicts changes in attitudes and behavior. do Paco and Raposa (2009) noted that the existing research on age and environmental attitudes has been inconsistent and suggest that additional research be conducted in this area. Gender has been studied as a predictor of attitudes for many years based on the notion that males and females possess distinct characteris- tics, and green research has suggested that females might be more envi- ronmentally concerned than males (Lee 2009; Mostafa 2007; Schwartz and Miller 1991). Interest has also been demonstrated in revealing differ- ences in environmental concern across ethnic groups (Baugh 1991; Ellen, Wiener, and Cobb-Walgren 1991; Jones and Carter 1994; Newell and Green 1997). Ellen, Wiener, and Cobb-Walgren (1991) failed to detect differences in environmental concern across African Americans and Cau- casians. Newell and Green (1997) reported that White consumers were more concerned with the overall environment, but also noted that early research failed to account for age or income differences within the groups studied. Their own research found that the significant differences between
  • 5. SUMMER 2011 VOLUME 45, NUMBER 2 333 White and Black consumers were observed only at the lower income and educational levels. Williams (1989) claimed that younger individuals within a racial category are well-versed about the environment as com- pared to older individuals in the same racial group. Moreover, Ellen, Wiener, and Cobb-Walgren (1991) noted the need to acknowledge dif- ferent racial segments when communicating about the environment. Because some consumers are willing to spend more than others to protect the environment, it is logical to assume that these more willing consumers may take a more active role in the environment. Hence, if we were able to identify the characteristics of the consumers that are willing to spend more, then appropriate messages can be communicated to them. Therefore, we sought to determine whether willingness to pay more differed by demographic characteristics. Hence, we pose the following research question: RQ1: Is a particular demographic group willing to pay more for an eco-friendly product, and if so, which one(s)? Research centered on environmental concern has focused largely on segmentation, based on individual and group perceptions and behaviors regarding general environmental concern (Diamantopoulos et al. 2003; do Paco and Raposo 2009; D’Souza et al. 2007; Lee 2009; Loureiro, McCluskey, and Mittelhammer 2002; Newell and Green 1997; Straughan and Roberts 1999). Unfortunately, research surrounding environmental concern tends to consider each major component in a vacuum (Allen, Davis, and Soskin 1993; Harrell and McConocha 1992; Morris, Hastak, and Mazis 1995; Schwepker and Cornwell 1991) as opposed to taking a comprehensive view to determine the relative importance of each com- ponent of concern. Moreover, the relative importance of each type of environmental issue and how it influences eco-friendly behaviors have not yet been explored. In evaluating the elements of environmental concern in a more compre- hensive manner, we can identify salient aspects for promoting eco-issues to consumers. When consumers adopt new behaviors that conserve the earth’s resources (e.g., buying an eco-friendly product that costs more), their health and quality of life will greatly benefit. To help promote this potential behavior, it is useful to determine which aspects of the environ- ment are perceived as more important to different groups. Stisser (1994) believed it is critical to understand how important the environment is to consumers relative to the environmental benefits they are seeking. Fur- thermore, by identifying these key environmental issues and assessing
  • 6. 334 THE JOURNAL OF CONSUMER AFFAIRS the effect of these on the consumer’s choice to purchase an eco-friendly product, we are following the process of behavior-driven researchers, the approach advocated by Bone, France, and Aikin (2009) in their commen- tary on health literacy. To examine the different elements of environmental concern, we utilize the seven dimensions of concern identified by Zimmer, Stafford, and Stafford (1994). This allowed us to determine whether the level of importance of certain types of environmental concern is significantly related to the willingness to spend more on an eco-friendly product. Thus, we examine the following research question: RQ2: Is the importance level of a specific type of environmental concern related to how much more an individual is willing to pay for an eco-friendly product? DATA COLLECTION To answer our research questions, we sought a sample of consumers who have in some manner demonstrated at least a minimal interest in environmentalism. Hence, we collected data at Sustainable Technologies Awareness Day (STAD) at a major southeastern urban university. STAD was held to encourage environmental awareness, inquiry and activism among students, faculty and staff; it featured more than forty eco-friendly initiatives at the university, in the community and by industry partners. These initiatives focused on recycling and other actions that reduce health risks, improve air quality and reduce costs. During the event, attendees were asked to complete a brief survey that included the seven different types of environmental concern identified by Zimmer, Stafford, and Stafford (1994): concern for waste, concern for wildlife, concern for the biosphere, concern for popular issues, concern for health, concern for energy and concern for environmental technology. According to Zimmer, Stafford, and Stafford, these seven items comprise an overall measure of environmental concern. Examples of each concern type were provided to respondents (see Table 1 for a description of the seven types of concern). Respondents were asked to rate their perceived importance of each of the seven types of environmental concern on a scale of 1 to 5, with 5 being most important. The reliability coefficient for the seven items as an overall measure of environmental concern was .80, demonstrating acceptable reliability. In addition, we asked respondents (in percentage terms) how much more they would be willing to pay for an eco-friendly product as compared to a non-eco-friendly product. They also had the option of indicating that they were unwilling to spend
  • 7. SUMMER 2011 VOLUME 45, NUMBER 2 335 TABLE 1 Issues and Descriptions Concern for Waste Concern for reducing and managing waste. Examples include waste control, waste disposal/reduction, landfills, and recycling Concern for Wildlife Concern for preserving animals and their habitats. Examples include species preservation, wilderness protection, trade in rare species/poaching and deforestation Concern for the Biosphere Concern for the earth and the air. Examples include ozone depletion and the greenhouse effect Concern for Popular lssues Concern for popular issues with recent visibility in the popular press. Examples include overpopulation, citizen participation, erosion and climate change. Concern for Health Concern for human survival and quality of life. Examples include human health, water protection and air pollution. Concern for Energy Concern for energy sources and consumption. Examples include clean energy, alternative energy sources, energy conservation, and automobiles Concern for Environmental Technology Concern for technologies that can affect the environment proactively. Examples include biotechnology, safe technology and community economic development more on such a product. In addition, we asked respondents their age, gender and ethnicity. Gender and ethnicity were categorical variables, while actual age was requested. Attendees who completed the survey and visited a minimum of three exhibitors were treated to a healthy lunch. A total of 337 participants completed the survey. About 72% were students, 21% were faculty/staff and 7% were campus visitors; 57% were female and 43% were male. About 42% were over 30 and the average age was 29.2 years. About 51% were Caucasian, 35% were African American, 6% were Asian, and 3% were Hispanic. The rest of the sample identified themselves as “other.” Analysis and Results Although we used a convenience sample of students, faculty and com- munity members at one university on a day dedicated to sustainability, we actually view this limited sample as a positive source of data because all respondents had exhibited some form of pro-environmental behavior. As shown in Table 2, the three concerns rated most highly were health (mean = 4.51), energy (mean = 4.48) and waste (mean = 4.21). In addi- tion, 91.2% of respondents indicated that they were willing to pay more money for products that are eco-friendly, although the percentage listed ranged from 1% to 100%. The most frequent response to this open-ended question was 10%; that is, 26.4% of the respondents indicated that they
  • 8. 336 THE JOURNAL OF CONSUMER AFFAIRS TABLE 2 Overall Means and Standard Deviations Issue Mean SD Waste 4.21 0.917 Wildlife 4.13 0.961 Biosphere 3.99 1.007 Popular issues 3.92 1.017 Health 4.51 0.746 Energy 4.48 0.750 Environmental technology 4.02 0.983 were willing to pay 10% more for an eco-friendly product. About 49% were willing to pay 10% more or less. However, 8.8% were unwilling to spend any more money on an eco-friendly product. To answer Research Questions 1 and 2, data were analyzed via the General Linear Model in SPSS. The independent variables included gender and ethnicity as categorical variables, with age and the seven types of environmental concern as continuous variables. The interac- tion effect between gender and ethnicity (the two categorical variables) was also included in the model. The single dependent variable was the additional percent individuals were willing to pay for an eco-friendly product. The overall model was significant (F = 2.15, p = .006) and univariate F-tests indicated that age (F = 4.14, p = .04), ethnicity (F = 3.51, p = .01) and waste (F = 5.81, p = .02) were all significant. The gender × ethnicity interaction was not significant (F = .83, p = .51). The significant effect for age indicates that consumer age has an influence on how much more a consumer is willing to pay for an environmentally friendly product. The parameter estimate for age was −.197 (t = −2.035, p = .04), indicating that younger respondents are willing to pay more than their older counterparts for an eco-friendly product, a finding consistent with much of the work that profiles the environmentally concerned consumer. For ethnicity, the group that categorized themselves as “Other” was willing to spend the most (28.85%), with African Americans coming in second (22.66%). Pairwise comparisons indicate that both African Amer- ican and Others were willing to spend significantly more than Caucasians (14.61%; p < .01 and p < .05, respectively). However, because there were small sample sizes for three of the ethnic groups (Asian Americans, Hispanics and Others), these results should be regarded with caution. Nevertheless, these results do indicate a positive response for Research Question 1—that certain demographic groups are willing to pay more for
  • 9. SUMMER 2011 VOLUME 45, NUMBER 2 337 TABLE 3 Univariate F-Tests: Percentage More Willing to Pay F-Test p-Value Gender 1.21 .27 Ethnicity 3.51 .01 Age 4.14 .04 Gender × Ethnicity 0.83 .51 Waste 5.81 .02 Wildlife 0.11 .74 Biosphere 0.70 .41 Popular issues 0.05 .82 Health 0.05 .82 Energy 0.00 .97 Environmental technology 1.50 .22 an eco-friendly product—and our findings provide some insight into that groups. As indicated in Table 3, only one type of environmental concern was significantly related to the amount an individual was willing to pay: con- cern for waste (β = 4.07, t = 2.41, p = .02). Hence, our results suggest that those individuals who perceive waste as highly important are more likely to be associated with a willingness to pay more for a product that is environmentally friendly. DISCUSSION AND IMPLICATIONS Because our final sample resulted in small cell sizes in the ethnicity category and because we only examined three demographic variables, generalizations from our findings must be drawn with caution. However, our findings do offer insight into perceptions of environmental concern and willingness to pay for an eco-friendly product. Given the significant difference of just one type of concern—waste—as an influencer of paying more for an environmentally friendly prod- uct, this research reinforces the notion of environmental concern as a multifaceted concept. Moreover, the presence of significant differences based on different demographic characteristics suggests that some of the widely held beliefs about environmental concern may be inaccurate or incomplete. For ethnicity, we found that African Americans are willing to spend significantly more than Caucasians on an eco-friendly product and Cau- casians are willing to spend the least. These findings are consistent with the viewpoint of Newell and Green (1997), who dispelled the belief
  • 10. 338 THE JOURNAL OF CONSUMER AFFAIRS that African Americans are apathetic toward the environment. Thus, our results reinforce the importance of avoiding stereotypes as well as updat- ing the profile of the environmentally concerned consumer to ensure that appropriate messages are communicated. Specifically, these ethnic differences suggest that communicating sus- tainable practices to Caucasians should possibly emphasize a potential for minimal expense (e.g., low minimum purchase requirement, short contract lengths) or long-term financial incentives (energy-efficient appli- ances). At the same time, it may be important to educate these other ethnic groups on why it is important to invest in eco-friendly products. However, because of the noted small cell sizes from the ethnicity analy- sis, these implications must be considered as suggestive only. Regardless, as our nation’s population is becoming more diverse, the public health community acknowledges the need to develop communication and health messages that resonate with ethnic groups, motivate engagement and support wise consumer choices. As noted in Healthy People (2010), a comprehensive set of objectives to promote America’s health, a tremen- dous disparity exists in morbidity and mortality of ethnic, underserved populations, compared with Caucasians. A major goal and public health priority is to promote health equity for minority groups (US Department of Health and Human Services 2000). The results for age indicate that younger individuals are willing to spend significantly more money than their older counterparts for an eco-friendly product. These findings suggest that educational messages targeted toward older adults may be necessary to encourage purchase of such products. The importance of these educational messages is underscored by the fact that the elderly are particularly vulnerable to environmental issues related to motor vehicle air pollution and global cli- mate change (US Climate Change Program 2008), because such changes due to greenhouse gases are believed to produce increased health risks from extreme weather events (e.g., flooding), extreme heat, infectious dis- eases, water contamination and vector-borne illnesses (Ebi et al. 2006; Kjellstrom et al. 2007). Moreover, physical limitations resulting from air pollution and climate change reduce mobility and recommended physi- cal activity that sustains health. Other affected health behaviors include dietary practices, which decline due to physical changes, such as reduc- tions in taste perception, olfactory sense and dentition. In sum, it is critical to educate the older population on why it is important to invest in prod- ucts that can help the environment. This educational message must be presented in “plain language” to ensure that the targeted consumer (in this case, older adults) can understand the relevance of this information
  • 11. SUMMER 2011 VOLUME 45, NUMBER 2 339 to their own health status and engage in the appropriate behavior based on that understanding (Bone, France and Aikin 2009). Our findings also suggest that respondents who are particularly con- cerned with waste may be more likely to spend more money on an environmentally friendly product. Therefore, a reduced usage of energy via simpler packaging and recycling innovations may be supported by a group of consumers. This decrease in energy consumption translates to decreased fossil fuel combustion and, in turn, reduced atmospheric release of greenhouse gases, such as carbon dioxide, methane and ozone. Individuals with cardiovascular and respiratory illnesses (e.g., asthma) are especially harmed by increases in ozone air production. Thus, more expensive green products may fare better when targeted toward those individuals who are more concerned with waste-related issues. Ideally, products targeted to such groups should be recyclable or otherwise helpful in reducing waste. Green products targeted to other demographic groups may need to be less expensive. However, green products are often more costly to manufacture than less eco-friendly goods, and therefore, are simply more expensive for consumers to purchase. As many manufacturers are required by govern- ment entities (e.g., the Food and Drug Administration) to comply with production and labeling guidelines for organic or sustainably produced goods, one consideration is to educate consumers and, in particular, older adults on the inherent costs that drive the price of green products higher than nongreen products. One potential avenue is through community information sessions sponsored by government agencies, a suggestion made by Newell and Green (1997) in their work on environmental con- cern. Educating consumers on why green products cost more as well as the benefits of using green products, particularly where health benefits are concerned (i.e., reduced factory emissions, pesticide-free agriculture), may be helpful in closing the gap between consumers merely possess- ing a pro-environmental attitude and extending that attitude to intentions to adopt pro-environmental behaviors—in the case here, spending more money on an environmentally friendly product. However, because our research only examined willingness to pay for an eco-friendly prod- uct and not behavior, this speculation needs to be examined in future research. Although a movement toward reducing the costs of these environmen- tally friendly products might be helpful, it may not be realistic. Another alternative is increased government subsidies for companies developing eco-friendly products so that the cost to the consumer can be reduced. If the ultimate universal goal is a sustainable environment with long-term
  • 12. 340 THE JOURNAL OF CONSUMER AFFAIRS health benefits for all consumers, then collective effort among consumers and businesses is critical. In short, our research begins to understand who is willing to pay more for an environmentally friendly product and what types of environmental concern may motivate individuals to do so allowing for the development of effective communications to different groups of consumers to educate them on the benefits of purchasing these products. Addressing salient needs is critical in moving from environmental concern to action, and consumers need to play an active role in maintaining their environment to protect their own community and personal health. By matching educa- tional messages to individual and collective group concerns, as implied by Ellen, Wiener, and Cobb-Walgren (1991), these messages can be based on consumers’ innate susceptibilities as well as their individual perspec- tives and concerns. That is, it is unlikely that one environmental campaign encouraging the purchase of an eco-friendly product can be created to appeal to a broad range of consumers. Yet the future vulnerability to the health impacts of climate change depends on our capacity for collective action. The public health implications of climate change are both long term and immediate. A long-term approach is needed to reverse the detrimen- tal impact on global atmosphere and ecosystems. In this case, the use of temporal framing (presenting a message with a specific time refer- ence) may be an effective strategy in reaching consumers (Kees 2011). However, there also exists an immediate task to communicate the need for adopting eco-responsible lifestyles. We agree with Newell and Green (1997) that government agencies must provide the critical information to consumers and, in particular, those groups of consumers who may be most affected by environmental-related problems. In addition, as noted by Rotfeld (2011), it is important to base information and programs on how people might actually use the information to change their behav- iors. With our increasingly diverse population, it is clear that “one size does not fit all.” Our research has provided some insight into how to promote consumer education and eco-friendly actions. Moreover, we must advocate for simultaneous shifts in community institutions and policy to support individual behavior change. Changes in transporta- tion, land use and housing policies are needed. Corporate incentives to minimize greenhouse gas emissions and support production of alter- nate energy would support eco-friendly consumer behaviors. Adopting these strategies would be important steps to address the environmental impact of global climate change and, ultimately, to protect consumer health.
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