An EfD study uncovered a surprising paradox: environmentally friendly alternatives can lead to higher overall consumption. The research, by Francisco Alpizar, Fredrik Carlsson, and Gracia Lanza, examines how consumers respond to biodegradable plastic bags as an alternative to traditional plastic bags.
The environmental impact of environmentally friendly alternatives is seldom null; they are just less damaging than existing options.
This study, based on a field experiment in Costa Rican farmers' markets, found that offering biodegradable bags for free significantly increased total bag usage. Instead of replacing plastic bags, customers took more bags, a phenomenon the researchers call the "behavioral rebound effect." When people perceive a product as environmentally friendly, they may unconsciously use it more freely, negating its ecological benefits.
Tested three alternatives
The researchers set up three experimental conditions:
Biodegradable bags provided for free – This resulted in a major increase in total bag use, as customers took more biodegradable bags than they would have taken plastic ones.
Biodegradable bags sold at a low price – When a minor cost was introduced, the customers used about the same number of bags as before.
Biodegradable bags given as a default (but with a price) – When biodegradable bags were the standard option, the total number of bags increased.
Price matters
The key finding is that pricing biodegradable alternatives helps reduce excessive use. Simply offering sustainable products isn’t enough; policies must consider how consumer behavior shifts in response to price. The researchers caution against subsidizing environmentally friendly alternatives without additional measures to prevent unintended increases in consumption.
“Sustainable alternatives alone aren’t enough—how people use them, along with thoughtful pricing and incentives, plays a crucial role in reducing environmental harm,” emphasizes Gracia Lanza, one of the authors.
Policy implications
The results highlight the need for careful policy design when promoting green alternatives.
This study shows that well-intended solutions can have unexpected consequences. By understanding consumer behavior, governments and businesses can develop smarter policies that truly reduce environmental impact.
By: Petra Hansson