Green Consumers or Green Wild Goose Chase: Market Demand As a Determinant of Eco-Innovation in the Purchase of Refrigerators

Abstract

This paper examined the determinants of eco-innovation from an evolutionary economics perspective. The focus was on consumer demand (pull) as a determinant of eco-innovation in the sale of consumer appliances (refrigerators). The research also addressed the effect of life cycle costing (LCC) and eco-labels on consumer demand for refrigerators. A mixed methodology approach combining quantitative analysis of web site sales was combined with qualitative content analysis of refrigerator product descriptions. The Energy Star eco-label and other environmental claims made in product descriptions were found to drive consumer demand for refrigerators. The research also found that consumers exhibited the willingness to pay (WTP) a premium for energy efficient and eco-innovative products when purchasing refrigerators from the Home Depot web site.