Conference Agenda

In this paper, we present a model of product differentiation where two firms can offer either a standard or a circular version of a product. The latter refers to a version of the good that can be shared in a peer-to-peer sharing platform. Consumers are heterogeneous concerning the amount of time they use the goods for themselves and can end up being either consumers of the standard product, or prosumers or users of the circular product. We characterize the equilibrium for a given degree of maturity of the sharing market, for maximum consumers’ use intensity and marginal cost differences between the two varieties. Key to our results is whether consumers care for circularity. In the absence of environmental awareness, there is very little space for the circular product to coexist with a standard variety: the circular good is more expensive, has a lower market share, and results in lower, albeit positive, profits. Things change dramatically if consumers experience bad conscience when purchasing the standard version: the circular product continues to be more expensive, but it may beat the standard one in market share and profits. This can even result in both firms offering the circular variety in equilibrium. Our findings suggest that consumers’ environmental awareness can be key to accelerating the transition towards the circular economy.

We experimentally test the relative eectiveness of standard neoclas-

sical as well as behavioral policies aimed at fostering a societally relevant

habit { in-house waste sorting. Our experimental population consisted of

almost 1100 households living in apartment buildings in the city center of

Amsterdam, the Netherlands. Our interventions were aimed at increasing

residents' intrinsic or extrinsic motivation to sort waste. We nd that the

intervention that draws on extrinsic motivations has an immediate and

sizable eect on waste sorting behavior, but we also nd that the average

treatment eect attenuates steeply over time. In contrast, we nd equally

sizeable yet long-lasting eects of for the treatment designed to increase

households' intrinsic motivation to sort waste. Our results highlight the

role intrinsic motivations play in guiding recurrent prosocial behaviors.

Food waste is a major global issue, with one-third of food produced for consumption—around 1.3 billion tons—discarded annually, contributing 6% to 8% of global greenhouse gas emissions. In Belgium, the average food waste per person is 37 kg, totaling about 240,925 tons, ranking it second in food waste per capita among EU countries in 2020. This study explores Belgian consumers' disposal decisions regarding cooking cream, incorporating stakeholder mapping, a referendum discrete choice experiment with 967 respondents, and policy workshops. Findings highlight a general aversion to food waste, with key factors being the best-before date, packaging type, and whether the product has been opened. Two distinct consumer profiles emerged: one group is more conscious of food waste and relies on sensory evaluation, while the other is more likely to discard products based on date labels and opening status, suggesting a need for targeted intervention. Policy recommendations emphasize raising awareness through tailored campaigns, clearer labeling, and retailer and school involvement. A multi-faceted approach targeting large families and younger populations, improving BBD understanding, and encouraging sensory checks is crucial, along with a dedicated food waste fund for long-term support.

The economic and psychological literature on second-hand consumption has identified specific drivers and barriers on the part of consumers. Little attention was devoted to consumers' awareness about the environmental costs entailed by production activities. In this paper, we investigate how beliefs formation and updating about environmental costs affect the intention to engage in second-hand consumption in a large, nationally representative sample of the Italian population (N=10,496). Intention was measured both in a self-reported fashion as well as through a voucher choice task. We also study how belief updating varies when the cost refers to CO2 versus energy versus water. We find that participants overestimate CO2 emissions and energy usage but underestimate water consumption; are moderately sensitive to information provision when it comes to stated intention and particularly sensitive in terms of willingness to accept and pay. Information on water usage elicits the strongest effects; belief updating influences stated intention and WTA/WTP even if this last effect is not always strong. Finally, overestimation of the environmental cost makes WTP increase and WTA decrease.