The Impact of Income Inequality on Sustainable Consumption

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This research explores the interplay between income inequality and sustainable consumption, highlighting how socioeconomic disparities shape consumer behavior. Using secondary data from 20 countries, a vignette experiment, and UK survey data, we find that both objective and perceived high levels of income inequality reduce sustainable consumption. Drawing on norm activation theory, we show that rising inequality diminishes consumers’ sense of responsibility for environmental outcomes and reduces their awareness of the environmental impact of their consumption choices. Our findings emphasize the interconnected nature of social and environmental dimensions of sustainable development. Reducing income inequality emerges as a pathway to foster sustainable consumption, suggesting that redistributive policies may not only promote equity but also enhance environmental outcomes. We also discuss how businesses and policymakers can mitigate the negative effects of inequality on sustainable consumption by promoting low-cost sustainability practices, leveraging impact labeling, and empowering consumers in regions with high inequality.
Original languageEnglish
Article number12541
JournalAcademy of Management Annual Meeting Proceedings
Volume2025
Issue number1
Number of pages6
ISSN0065-0668
DOIs
Publication statusPublished - 01.07.2025
Event85th Annual Meeting of the Academy of Management - AOM 2025 - Copenhagen, Denmark
Duration: 25.07.202529.07.2025
Conference number: 85

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