Engagement With Air Quality Information: Stated Versus Revealed Preferences

Air pollution has a significant impact on health but is often invisible to the naked eye. Real-time air quality information can help people take action to protect their health. However, little is known on how to most effectively frame air quality information to promote public health. We conducted a field experiment to study people’s engagement with real-time air quality information provided through a smartphone application (app). We tested 12 different messaging strategies on both intent to engage with air quality information (through a survey), and actual engagement with air quality information tracked through the app in response to the messaging strategies. Our results, based on 835 survey respondents and 2,740 app users, show that intent to engage and actual engagement differ. Overall, users’ demographics were the most important predictor of engagement with messages. This research demonstrates the significance of testing messaging strategies through field experiments rather than through surveys, and the importance of targeted messages

ECO-LABELING STRATEGIES: THE ECO-PREMIUM PUZZLE IN THE WINE INDUSTRY

Eco-labeling signals that a product has been eco-certified. While there is increasing use of eco-labeling practices, there is still little understanding of the conditions under which eco-labels can command price premiums. In this paper, we argue that the certification of environmental practices by a third party should be analyzed as a strategy distinct from although related to the advertisement of the eco-certification through a label posted on the product. By assessing eco-labeling and eco-certification strategies separately, we are able to identify benefits associated with the certification process independently from those associated with the actual label. More specifically, we argue in the context of the wine industry that eco-certification can provide benefits, such as improved reputation in the industry or increased product quality, which can lead to a price premium without the need to use the eco-label. We estimate this price premium of wine due to the eco-certification of grapes using 13,400 observations of wine price, quality rating, varietals, vintage, and number of bottles produced, for the period 1998-2005. Overall, certifying wine increases the price by 13%, yet including an eco-label reduces the price by 20%. This result confirms the negative connotation associated by consumers with organic wine. The price premium of this luxury good due to certification acts independently from its label, a confounding result not previously demonstrated by related literature.organic wine, wine market, price premium, eco-wine, Demand and Price Analysis, Environmental Economics and Policy,

Institutional Pressures and Organizational Characteristics: Implications for Environmental Strategy

A broad literature has emerged over the past decades demonstrating that firms' environmental strategies and practices are influenced by stakeholders and institutional pressures. Such findings are consistent with institutional sociology, which emphasizes the importance of regulatory, normative and cognitive factors in shaping firms' decisions to adopt specific organizational practices, above and beyond their technical efficiency. Similarly, institutional theory emphasizes legitimation processes and the tendency for institutionalized organizational structures and procedures to be taken for granted, regardless of their efficiency implications. However, the institutional perspective does not address the fundamental issue of business strategy necessary to explain the persistence of substantially different strategies among firms that are subjected to comparable levels of institutional pressures. In this chapter, we present current research arguing that such firms adopt heterogeneous sets of environmental management practices despite facing common institutional pressures because organizational characteristics lead managers to interpret these pressures differently.

Using Market Forces for Social Good

The environment has traditionally been the domain of nonprofit organizations. For decades, nonprofit organizations have worked to reduce the negative impact of market-based activity on the environment. However, more recently nonprofits have started to adopt the methods and values of the market to achieve sustainability goals. One of the primary strategies that nonprofits use is to disclose, or pressure corporations to disclose, information about the environmental impact of their products and processes. These information disclosure strategies seek to help stakeholders make green purchases or invest in corporations that use green practices, thus incentivizing corporations to reduce their negative environmental impact. In this chapter, we review the benefits and the challenges encountered by nonprofits in their attempt to use information disclosure strategies