Document Type
Article
Author ORCID Identifier
Rick Hardcopf https://orcid.org/0000-0002-4075-7679
Journal/Book Title
Business Strategy and the Environment
Publisher
John Wiley & Sons Ltd.
First Page
1
Journal Article Version
Accepted Manuscript
Last Page
38
Publication Date
9-8-2024
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial 4.0 License
Abstract
Environmental accidents (EAs) are firm operational failures that harm human health, the natural environment, and offending firms. We propose they also initiate a subtle form of activism among consumers living near the accident by stimulating increased ‘green’ behavior. Using annual county-level data in California from 2000-2015, we show that following an EA, consumers reduce the trash/garbage they generate and the energy they consume. The impact is long-lasting and stronger when EAs are more severe and when consumers have pro-environmental beliefs, ready access to information, and convenient access to ‘green’ options, such as recycling. Since affected consumers may also refuse to buy from, invest in, or work for offending companies, the results suggest that firms should develop environmental strategies which include engaging and collaborating with local communities. The study results also provide input for the development of initiatives which maximize consumer ‘green’ behavior after, or in the absence of, an EA.
Recommended Citation
Hardcopf, R., & Dhanorkar, S. (2024). How environmental accidents influence consumer “green” behavior: An econometric analysis. Business Strategy and the Environment, 1–18. https://doi.org/10.1002/bse.3946
