Two-Thirds Of People Will Pay Premium For Green Products

October 18, 2007

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Nearly nine out of 10 consumers worldwide said they would switch to energy providers that offer products and services that help reduce the level of greenhouse gas emissions, according to a study on climate change released today by Accenture.

The study, based on a survey of more than 7,500 consumers in 17 countries in North America, Europe and Asia, also found that nearly two-thirds (64 percent) of respondents said they would be willing to pay a higher price – a premium of 11 percent, on average – for products and services that produce lower greenhouse gas emissions.

While respondents across the world are concerned about climate change and its impact, the concern appears to be greatest in emerging-market countries. Ninety-seven percent of consumers surveyed in Brazil, China and India said they are concerned about climate change, compared with 85 percent of all respondents, and 98 percent of respondents in those three emerging-market countries said they believe that climate change will directly affect their lives, compared with just 73 percent of respondents in Europe.

Respondents in emerging-market countries are also the most aware of the level of effort required for their countries to achieve their targets for reducing greenhouse gas emissions. For instance, more than 80 percent of emerging-market respondents said they avoid taking the car (82 percent, compared with an average of 68 percent for all other respondents) and avoid buying food imported by plane (82 percent, compared with an average of 63 percent for all other respondents).

Nine out of 10 of all respondents said they would have a negative perception of any energy provider that is not taking concrete action to address climate change. Further, more than half (54 percent) said they would be willing to switch electricity and gas providers if their current provider didn’t take action to address climate change, and 61 percent said the same of their oil providers.

The study found that individuals are taking the lead on climate change in response to deep concern over its effects on their everyday lives. The vast majority (85 percent) of respondents said they are either ‘?extremely’ or ‘?somewhat’ concerned about climate change, and 81 percent said they believe it will directly affect their lives.

While the majority (more than 80 percent) of consumers said they believe that climate change will have the greatest impact on weather and the ecosystem, three out of four (74 percent) said they believe it will also have a significant effect on people’s health.

The study also shows that consumers are already acting on their concerns about climate change. Most survey respondents said they ‘?frequently’ recycle paper or plastic (71 percent of respondents), shut down electric devices when not in use (62 percent), turn down the heating or air-conditioning at home (61 percent), and use high-efficiency light bulbs (59 percent). More than one in three (41 percent) said they regularly buy products containing recycled material.

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Reader Comments

Who did Accenture interview? Only Sierra Club members? There’s no way those statistics can apply to the general population of the US, much less the developing world. And 11 percent? Oh, please! They don’t even talk about “people,” they refer to “consumers!” Considering all of the machinery that continues to convert people into consumers, where consumption itself is way more important than these “green” ideals, there’s no way I’d rely on this study to support a business plan.

Mike | October 18th, 2007

There is an interesting paradox here. A majority of consumers will pay more for products that are manufactured in an environmentally friendly way, yet consumers are still not putting their money where there mouth is. There are green computers that don’t have a premium price, and Dell is seeing a huge demand, especially among commercial buyers (businesses) that are starting to measure, and worry about, power costs, recycling, and their carbon footprint. Dell has a whole line of EnergyStar servers and EPEAT Gold notebooks and desktops can reduce power use by as much as 70%. Check it out at Dell.com/energy.

Jeffatdell | December 11th, 2007