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The Purchase of Voluntary Carbon Offsets by
Australian Consumers: Exploring the Attitude-
               Behaviour Gap




              Sarah Sloan and Jannie Adamsen


Presented at the Australian and New Zealand Marketing Conference (ANZMAC)
                    Nov 28 – Dec 1 2011, Perth, Australia
Background



Global concern for sustainability
increased in recent years.
                                                   • Businesses
                                      Compliance   • Legislated
Issue of carbon regulation fiercely
 debated in public eye recently.
                                                   • Primarily Consumers
A number of initiatives in place       Voluntary   • Purchased
                                                   • $387m worldwide in 2009
to reduce Australia’s carbon
 footprint, including purchase
of carbon offsets.



    Griffith Business School
Voluntary Carbon Offsets
All purchases of carbon credits not driven by existing regulatory compliance
obligation.

For example, when purchasing a flight you are given the opportunity to
offset your flight.

Carbon offsets originate from emissions reduction projects and are thus
offsets.

Market has been characterised by an absence of publicly available
information and lack of transparency.

Australian markets represent just 1.2% of worldwide markets.


  Griffith Business School
Research Question and Hypotheses

RQ: Does an attitude-behaviour gap exist with regards to the purchase of
voluntary carbon offsets, and if so, why?

H1: There is minimal translation of attitudes towards climate change into
subsequent behaviour of buying carbon offsets.
H2: Attitudes are an indicator of future purchase intentions.
H3: Purchases of voluntary carbon offsets are low due to a lack of consumer
knowledge.
H4: Consumers do not purchase carbon offsets as they perceive this to be
hard to do.




  Griffith Business School
Green Consumerism

Concern about environmental sustainability and climate change has
increased dramatically in the last decade.

Starting to affect the way consumers behave.

No research into purchase of voluntary carbon offsets.




 Griffith Business School
Attitude Behaviour Gap

Well established attitude-behaviour gap with regards to green behaviour.

Attitudes towards the environment are mainly positive, but behaviour is not
consistent with these attitudes.

Concern for the environment does not translate into actual purchases.




 Griffith Business School
Theory of Planned Behaviour

Attitude behaviour gap questions TPB (Ajzen, 1985).

TPB is an extension of original Theory of Reasoned Action (TRA) (Fishbein
& Ajzen, 1975).

Proposes the most immediate and important predictor of behaviour is an
intention to perform it.




 Griffith Business School
Methodology

Cross sectional data obtained over 2 week period

83 respondents

Invitations to an online survey were sent by email and through social media.
Convenience sampling used, while snowball sampling initiated by request to
forward the link.

42 items measuring knowledge of carbon offsets, purchase behaviour of
carbon offsets, intention for future purchases and attitudes towards the
environment.




 Griffith Business School
Methodology continued
Multiple measures used to gauge consumer                        Cognition

attitudes. Measured on 7 point Likert scales to
measure valence and extremity
accompanying attitudes.

                                                            Attitudes
Revised New Ecological Paradigm (NEP)
scale (Dunlap & Van Liere, 1978; Dunlap,
                                             Conation                       Affect
Van Liere, Mertig & Jones, 2000) was used
due to it’s sound psychometric properties
and proven application to environmental issues.

The first application of this scale to an Australian context.



 Griffith Business School
Sample Profile

    83 Respondents
    Females overrepresented
    Mean age of respondents = 32
    47 Australian postcodes, across 6 states and territories
H1: There is minimal translation of attitudes towards
climate change into subsequent behaviour of buying
carbon offsets.
A scale variable of attitudes towards the environment and climate change
was created by adding six ordinal attitudinal variables together (minimum
possible score of 6, maximum score of 30).

A t-test was conducted to ascertain if differences between purchasers and
non-purchasers of carbon offsets existed with regards to attitudes.

Purchasers of carbon offsets have more positive attitudes towards the
environment (M = 23.91, SD = 3.6), than non-purchasers of carbon offsets
(M = 21.81, SD = 3.2), t (81) = 2.03, p = 0.046 (two tailed).




Griffith Business School
H1 Continued

Significantly, 83.1% of respondents recorded a positive (M = 19–24) or
extremely positive (M = 25-30) attitude measure.

                                        Attitude Responses
                             80
                             60
             Percentage of   40
              Responses
                             20
                              0
                                  Negative   Neutral   Positive   Extremely
                                                                   Positive




However, only 14.5% of respondents has purchased carbon offsets.




Griffith Business School
H2: Attitudes are an indicator of future purchase
intentions of carbon offsets

An ANOVA was conducted to explore the impact of attitude on future
purchase intentions. Subjects were divided into three groups according to
their purchase intentions (positive, neutral and negative intentions).

There was a statistically significant difference at the p < .001 level for the
three groups: F (2, 80) = 7.1.

Therefore, this hypothesis is supported, as it has been found that positive
attitudes are likely to correlate with positive purchase intentions of carbon
offsets. This concurs with previous research that has found that positive
attitudes correlate with positive intentions to purchase (Vermeir & Verbeke,
2007; Kalafatis et. al. 1999: Paladino, 2005; Rundle-Thiele, 2009).



Griffith Business School
H3: Purchases of voluntary carbon offsets are low
due to lack of consumer knowledge.

A scale variable of knowledge of carbon offsets was created by adding
seven ordinal variables together (minimum possible score 7, maximum
score of 35). A t-test was conducted to ascertain if differences between
purchasers and non-purchasers of carbon offsets existed with regards to
knowledge levels.

It has been proven that purchasers of carbon offsets have a higher level of
knowledge of carbon offsets (M = 23.16, SD = 4.56) than non-purchasers (M
= 17.9, SD = 4.66), t (81) = 3.62, p = 0.001.

This can lead to the conclusion that people that have a lack of knowledge
are less likely to purchase carbon offsets.



Griffith Business School
H4: Consumers do not purchase carbon offsets as
they perceive this to be too hard.

The mean of perceived control question “Carbon offsets are easy to
purchase” is 2.6 (SD = .89) (where 1 is strongly disagree, and 5 is strongly
agree), indicating that respondents disagreed with this statement.

A one sample t-test showed this to be significantly different (p = 0.00) from
the neutral point.

Respondents find it difficult to purchase carbon offsets, which could be a
perceived barrier to purchase.




 Griffith Business School
Table 1:                 Summary of Results

     Hypothesis                                Test          Result
H1   There is minimal translation of attitudes Two sample t- Supported
     towards climate change into subsequent test
     behaviour of buying carbon offsets.


H2   Attitudes are an indicator   of   future ANOVA         Supported
     purchase intentions.
H3   Purchases of voluntary carbon offsets are Two sample t- Supported
     low due to a lack of consumer knowledge.  test

H4   Consumers do not purchase carbon offsets One sample t- Supported
     as they perceive this to be too hard.    test
Attitudes              Intentions              Behaviour




Figure 1. Adapted from Theory of Planned Behaviour (Ajzen, 1985).




Griffith Business School
Contribution

For policy makers:
 Results provide a mechanism for influencing desired consumer actions.
 To shape public support and maximise abatement, could implement an
   education campaign to increase knowledge among consumers

For Managers:
 Must raise awareness in the marketplace of what their product is
 Provide an easily accessible avenue for product purchase




Griffith Business School
Limitations

Small sample size

Convenience and snowball sampling used.

Primarily, the sample is located in QLD, and NSW. Could extend this to all of
Australia.

Opportunity to conduct a longitudinal study to measure changes in attitudes
and purchase behaviour over time, especially in relation to new carbon tax
legislation.
Future Research Areas

Consumer attitudes towards carbon offsets, as this was outside the scope of
the study

Consumer attitudes towards a carbon tax

Investigate how incentives to purchase carbon offsets would impact
purchase decisions
Conclusions
Clear attitude – behaviour gap exists among Australian consumers, with
regards to purchase of voluntary carbon offsets.

Consumers strong positive attitudes towards the environment and climate
change do not translate into actual purchases, with only 14.5% of the
sample having previously purchased carbon offsets.

A lack of knowledge about voluntary carbon offsets, and the perception that
carbon offsets are hard to purchase, could be stifling carbon offset sales.

Positive attitudes have shown to indicate positive intentions, though these
do not always eventuate in pro-environmental behaviour. This calls into
question the validity of the TPB within an environmental context, and
provides future direction for research.
Thank you.

Questions?
Contact Us


If you would like to contact the researchers for questions
or collaboration opportunities, please direct
correspondence to Sarah Sloan at
s.sloan@griffith.edu.au




Griffith Business School

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Purchase of Voluntary Carbon offsets

  • 1. The Purchase of Voluntary Carbon Offsets by Australian Consumers: Exploring the Attitude- Behaviour Gap Sarah Sloan and Jannie Adamsen Presented at the Australian and New Zealand Marketing Conference (ANZMAC) Nov 28 – Dec 1 2011, Perth, Australia
  • 2. Background Global concern for sustainability increased in recent years. • Businesses Compliance • Legislated Issue of carbon regulation fiercely debated in public eye recently. • Primarily Consumers A number of initiatives in place Voluntary • Purchased • $387m worldwide in 2009 to reduce Australia’s carbon footprint, including purchase of carbon offsets. Griffith Business School
  • 3. Voluntary Carbon Offsets All purchases of carbon credits not driven by existing regulatory compliance obligation. For example, when purchasing a flight you are given the opportunity to offset your flight. Carbon offsets originate from emissions reduction projects and are thus offsets. Market has been characterised by an absence of publicly available information and lack of transparency. Australian markets represent just 1.2% of worldwide markets. Griffith Business School
  • 4. Research Question and Hypotheses RQ: Does an attitude-behaviour gap exist with regards to the purchase of voluntary carbon offsets, and if so, why? H1: There is minimal translation of attitudes towards climate change into subsequent behaviour of buying carbon offsets. H2: Attitudes are an indicator of future purchase intentions. H3: Purchases of voluntary carbon offsets are low due to a lack of consumer knowledge. H4: Consumers do not purchase carbon offsets as they perceive this to be hard to do. Griffith Business School
  • 5. Green Consumerism Concern about environmental sustainability and climate change has increased dramatically in the last decade. Starting to affect the way consumers behave. No research into purchase of voluntary carbon offsets. Griffith Business School
  • 6. Attitude Behaviour Gap Well established attitude-behaviour gap with regards to green behaviour. Attitudes towards the environment are mainly positive, but behaviour is not consistent with these attitudes. Concern for the environment does not translate into actual purchases. Griffith Business School
  • 7. Theory of Planned Behaviour Attitude behaviour gap questions TPB (Ajzen, 1985). TPB is an extension of original Theory of Reasoned Action (TRA) (Fishbein & Ajzen, 1975). Proposes the most immediate and important predictor of behaviour is an intention to perform it. Griffith Business School
  • 8. Methodology Cross sectional data obtained over 2 week period 83 respondents Invitations to an online survey were sent by email and through social media. Convenience sampling used, while snowball sampling initiated by request to forward the link. 42 items measuring knowledge of carbon offsets, purchase behaviour of carbon offsets, intention for future purchases and attitudes towards the environment. Griffith Business School
  • 9. Methodology continued Multiple measures used to gauge consumer Cognition attitudes. Measured on 7 point Likert scales to measure valence and extremity accompanying attitudes. Attitudes Revised New Ecological Paradigm (NEP) scale (Dunlap & Van Liere, 1978; Dunlap, Conation Affect Van Liere, Mertig & Jones, 2000) was used due to it’s sound psychometric properties and proven application to environmental issues. The first application of this scale to an Australian context. Griffith Business School
  • 10. Sample Profile  83 Respondents  Females overrepresented  Mean age of respondents = 32  47 Australian postcodes, across 6 states and territories
  • 11. H1: There is minimal translation of attitudes towards climate change into subsequent behaviour of buying carbon offsets. A scale variable of attitudes towards the environment and climate change was created by adding six ordinal attitudinal variables together (minimum possible score of 6, maximum score of 30). A t-test was conducted to ascertain if differences between purchasers and non-purchasers of carbon offsets existed with regards to attitudes. Purchasers of carbon offsets have more positive attitudes towards the environment (M = 23.91, SD = 3.6), than non-purchasers of carbon offsets (M = 21.81, SD = 3.2), t (81) = 2.03, p = 0.046 (two tailed). Griffith Business School
  • 12. H1 Continued Significantly, 83.1% of respondents recorded a positive (M = 19–24) or extremely positive (M = 25-30) attitude measure. Attitude Responses 80 60 Percentage of 40 Responses 20 0 Negative Neutral Positive Extremely Positive However, only 14.5% of respondents has purchased carbon offsets. Griffith Business School
  • 13. H2: Attitudes are an indicator of future purchase intentions of carbon offsets An ANOVA was conducted to explore the impact of attitude on future purchase intentions. Subjects were divided into three groups according to their purchase intentions (positive, neutral and negative intentions). There was a statistically significant difference at the p < .001 level for the three groups: F (2, 80) = 7.1. Therefore, this hypothesis is supported, as it has been found that positive attitudes are likely to correlate with positive purchase intentions of carbon offsets. This concurs with previous research that has found that positive attitudes correlate with positive intentions to purchase (Vermeir & Verbeke, 2007; Kalafatis et. al. 1999: Paladino, 2005; Rundle-Thiele, 2009). Griffith Business School
  • 14. H3: Purchases of voluntary carbon offsets are low due to lack of consumer knowledge. A scale variable of knowledge of carbon offsets was created by adding seven ordinal variables together (minimum possible score 7, maximum score of 35). A t-test was conducted to ascertain if differences between purchasers and non-purchasers of carbon offsets existed with regards to knowledge levels. It has been proven that purchasers of carbon offsets have a higher level of knowledge of carbon offsets (M = 23.16, SD = 4.56) than non-purchasers (M = 17.9, SD = 4.66), t (81) = 3.62, p = 0.001. This can lead to the conclusion that people that have a lack of knowledge are less likely to purchase carbon offsets. Griffith Business School
  • 15. H4: Consumers do not purchase carbon offsets as they perceive this to be too hard. The mean of perceived control question “Carbon offsets are easy to purchase” is 2.6 (SD = .89) (where 1 is strongly disagree, and 5 is strongly agree), indicating that respondents disagreed with this statement. A one sample t-test showed this to be significantly different (p = 0.00) from the neutral point. Respondents find it difficult to purchase carbon offsets, which could be a perceived barrier to purchase. Griffith Business School
  • 16. Table 1: Summary of Results Hypothesis Test Result H1 There is minimal translation of attitudes Two sample t- Supported towards climate change into subsequent test behaviour of buying carbon offsets. H2 Attitudes are an indicator of future ANOVA Supported purchase intentions. H3 Purchases of voluntary carbon offsets are Two sample t- Supported low due to a lack of consumer knowledge. test H4 Consumers do not purchase carbon offsets One sample t- Supported as they perceive this to be too hard. test
  • 17. Attitudes Intentions Behaviour Figure 1. Adapted from Theory of Planned Behaviour (Ajzen, 1985). Griffith Business School
  • 18. Contribution For policy makers:  Results provide a mechanism for influencing desired consumer actions.  To shape public support and maximise abatement, could implement an education campaign to increase knowledge among consumers For Managers:  Must raise awareness in the marketplace of what their product is  Provide an easily accessible avenue for product purchase Griffith Business School
  • 19. Limitations Small sample size Convenience and snowball sampling used. Primarily, the sample is located in QLD, and NSW. Could extend this to all of Australia. Opportunity to conduct a longitudinal study to measure changes in attitudes and purchase behaviour over time, especially in relation to new carbon tax legislation.
  • 20. Future Research Areas Consumer attitudes towards carbon offsets, as this was outside the scope of the study Consumer attitudes towards a carbon tax Investigate how incentives to purchase carbon offsets would impact purchase decisions
  • 21. Conclusions Clear attitude – behaviour gap exists among Australian consumers, with regards to purchase of voluntary carbon offsets. Consumers strong positive attitudes towards the environment and climate change do not translate into actual purchases, with only 14.5% of the sample having previously purchased carbon offsets. A lack of knowledge about voluntary carbon offsets, and the perception that carbon offsets are hard to purchase, could be stifling carbon offset sales. Positive attitudes have shown to indicate positive intentions, though these do not always eventuate in pro-environmental behaviour. This calls into question the validity of the TPB within an environmental context, and provides future direction for research.
  • 23. Contact Us If you would like to contact the researchers for questions or collaboration opportunities, please direct correspondence to Sarah Sloan at s.sloan@griffith.edu.au Griffith Business School