Pro-environmental Consumption: Effects on Subjective Well-Being as a Proxy For Utility

This paper examines the association between pro-environmental consumption and subjective well-being and tests whether this type of decision could be explained as a utility-maximizing choice under welfare economics, or it is subject to systematic deviations using three waves (2014, 2019, 2020) of the Aspects of Daily Life dataset, an annual multipurpose sample survey from Italy. Pertinent literature provides evidence for positive and significant effects for various pro-environmental consumption ranges; however, studies describing this relationship and drawing comparisons based on specific dimensions are limited. Apart from evaluating this relationship following the techniques and models introduced in previous literature, two composite indicators, representing preferences for pro-environmental behaviour in different dimensions, are constructed based on the apropos PEC variables. One indicator, labelled as “pro-active behaviour,” encompasses the consumption of products with better environmental efficiency, while the other, labelled as “avoidance behaviour,” pertains to sustainable choices that involve avoiding or less frequently engaging in consumption decisions with negative ecological externalities. The findings provide that the former has a stronger effect on subjective well-being compared to the latter.