How to improve green purchase: a behavior
experiment analysis based on game theory
Jing Wei, Xiaoli Zhao, Zhiyi Huang, Yuanying Huang, Xijing Lian, Wanjia Zou
[email protected]
China University of Petroleum (Beijing)
 The framework of this paper
•
•
•
•
•
•
•
The significance of improving green purchase
Innovation of this paper
Basic experimental information
Experimental design
Experimental data analysis
Results discussion
Future
 The significance of improving green purchase
Environment Pollution
Production
Consumption
Corporations（profit maximization）
Consumers (limited social
cognition)
Negative Externality
Government ( social sustainable
development)
Environment & Economy
 Innovation
• Taking laboratory experiments in studying the feasibility of various
policies of declining consumption negative externality
• Linking environmental cognition with green purchase behavior in
discussing gaps between cognition and behavior
• Combining experiments and interviews in studying policy effect of
improving green purchase
 Basic experimental information –green consumption in China
Experimental Groups
0 Basic Experiment
1 Green Procurement Law Policy
2 Green Angel Logo Policy
3 Ironic Pollution Results Video
4 Governance Benefits Video Policy
5 Green Purchase Information Disclosure Policy
6 Minority Green Purchase Information Disclosure Policy
7 Small Fixed Monetary Subsidy Policy
8 Large Fixed Monetary Subsidy Policy
9 Fixed Environmental Tax Policy
10 Payment Transfer Policy
 Basic experimental information
Client
• Round
• Question
• Policy
Information
• Individual
single income
and total
income
 Basic experimental information
Master control：
Enacting policies
Receiving purchase behavior
Sending income information
Income function:
R=U-P-W/N
W=（-n）*n+ tng*（N-n）

Experimental design
Experiment framework (based on IAD
framework- Institution and development)
Experiment
Numbers of subjects
N=8 (n represents green consumers)
Decision set in every decision point
green purchase behavior, non-green purchase behavior
Decision function
R=U-P-W/N
W=（-n）*n+ tng*（N-n）
Available information at the decision point
numbers of subjects, goods price, policy information,
Income related with others
Result
Green or non-green purchase behavior
Income relationship based on behaviors and
results
Individual single and total income
Numbers of green purchase behaviors with diverse environmental cognition (Average)
Experiment Groups
Higher
3.39
5
Middle
4
6.29
Lower
2.22
2
2 Green Angel Logo Policy
3 Ironic Pollution Results Video
1.4
5
2.25
2
3.29
2.25
4 Pollution Governance Benefits Video
5
1.86
3.5
5 Green Purchase Information Disclosure Policy
5.2
4.89
4.5
6 Minority Green Purchase Information Disclosure Policy
7 Small Fixed Monetary Subsidy Policy
3.5
1.67
2.91
3.33
0
0
8 Large Fixed Monetary Subsidy Policy
13.5
8.06
11
9 Fixed Environmental Tax
7
5.82
12.5
10 Payment Transfer
11.6
2.74
0
0 Basic Experiment
1 Green Procurement Law Policy
 Experimental data analysis
Basic Experiments
B1
8
B2
7
B3
6
5
B4
R1, 5
4
B5
R2, 4
3
R3, 3
R5, 3
2
R8, 3
R4, 2
R6, 2
R10, 3
R7, 2
R9, 2
B6
B7
1
B8
0
R1
R2
R3
R4
R5
R6
R7
R8
R9
R10
Average
Rational Choice
 Mann-Whitney test results- Compared with basic experiment
Mann-Whitney test results
P-value
The rate of green purchase
(B= 35.1%)
1 Green Procurement Law Policy
0.001***
20%
2 Green Angel Logo Policy
0.584
31.25%
3 Ironic Pollution Results Video Policy
0.034**
26.25%
4 Pollution Governance Benefits Video Policy
0.178
30%
5 Purchase Information Disclosure Policy
0.039**
43.75%
6 Minority Purchase Information Disclosure Policy
0.112
28.75%
7 Small Fixed Monetary Subsidy Policy
0.003**
23.75%
8 Large Fixed Monetary Subsidy Policy
0.000***
79.17%
9 Fixed Environmental Tax Policy
0.156
41.67%
10 Payment Transfer Policy
0.116
41.25%
8
Policy Dependence
7
6
5
4
3
2
1
0
A-R1 A-R2 A-R3 A-R4 A-R5 A-R6 A-R7 A-R8 A-R9 A-R10 B-R1 B-R2 B-R3 B-R4 B-R5 B-R6 B-R7 B-R8 B-R9 B-R10 A-R1 A-R2 A-R3 A-R4 A-R5
0 Basic Experiment
2 Green Angel Logo
4 Pollution Government Benefits Video
6 Minority Purchase Information Disclosure
8 Large Fixed Monetary Subsidy
10 Payment Transfer
1 Green Procurement Law
3 Ironic Pollution Results Video
5 Purchase Information Disclosure
7 Small Fixed Monetary Subsidy
9 Fixed Environmental Tax
11 Rational Choice
 Mann-Whitney test results- Policy Dependence
Mann-Whitney test results
P-value
1 Green Procurement Law Policy
0.832
2 Green Angel Logo Policy
0.447
3 Ironic Pollution Results Video Policy
0.002**
4 Pollution Governance Benefits Video Policy
0.141
5 Purchase Information Disclosure Policy
0.059
6 Minority Purchase Information Disclosure Policy
0.000***
7 Small Fixed Monetary Subsidy Policy
0.000***
8 Large Fixed Monetary Subsidy Policy
0.006**
9 Fixed Environmental Tax Policy
0.832
10 Payment Transfer Policy
0.447
 Mann-Whitney test results- Compared among experimental groups
P -value
1 Green Procurement Law Policy
2 Green Angel Logo Policy
3 Ironic Pollution Results Video Policy
4 Pollution Governance Benefits Video Policy
5 Green Purchase Information Disclosure
Policy
6 Minority Green Purchase Information
Disclosure Policy
7 Small Fixed Monetary Subsidy Policy
8 Large Fixed Monetary Subsidy Policy
9 Fixed Environmental Tax Policy
10 Payment Transfer Policy
G1
-
G2
G3
G4
G5
G6
0.006* 0.186 0.132 0.000*** 0.045*
-
0.425 0.597
-
0.137
0.337 0.000***
-
0.001***
-
G7
G8
G9
G10
0.001**
*
0.248
0.000*** 0.000***
0.258
0.258
0.000***
0.658
0.658
0.000*** 0.002** 0.01**
0.133
0.133
0.000*** 0.01**
0.000*** 0.000*** 0.000***
-
0.313
-
0.18
0.541
0.165
0.035*
0.722
0.000*** 0.009** 0.027*
0.001**
*
0.000**
0.000***
*
0.964
0.000*** 0.000***
-
-
 Data analysis
Pass U-test （Difference）
& Don’t pass U-test (Same)
Difference
Same
Policies (D- policy dependence)
Positive
(8 difference)
5 Purchase Information Disclosure Policy (PD)
8 Large Fixed Monetary Subsidy Policy
9 Fixed Environmental Tax Policy (PD)
10 Payment Transfer Policy (PD)
Negative
1 Green Procurement Law Policy (PD)
3 Ironic Pollution Results Video Policy
7 Small Fixed Monetary Subsidy Policy
2 Green Angel Logo Policy(PD)
6 Minority Purchase Information Disclosure Policy
4 Pollution Governance Benefits Video Policy
 Results discussion
• 8 Large Fixed Monetary Subsidy Policy
Why not all the subjects prefer to green purchase behavior at the same price?
• 1 Green Procurement Law Policy (PD)
• 3 Ironic Pollution Results Video Policy
• 7 Small Fixed Monetary Subsidy Policy
Why those policies lead to a negative influence on green purchase from the view of
consumers ?
• Environmental damage degree
• Altruism preference
• Government credibility
 Results discussion
• 2 Green Angel Logo Policy (PD)
• 6 Minority Purchase Information Disclosure Policy
• 4 Pollution Governance Benefits Video Policy (PD)
Why those policies decrease the rate of green purchase instead of increasing?
• Information asymmetry
• Altruism preference
• Government credibility
 Future
• The game idea between green purchase behavior and social welfare worth
thinking deeply.
• Experiments data and results need more sessions for its reliability.
• Policies could be designed with mutual support, which may offer more feasible
suggestions in improving green purchase.
How to improve green purchase: a behavior experiment analysis
based on game theory
Thank you for kind attention !
Welcome for discussion ! Email: [email protected]
Jing Wei, Xiaoli Zhao, Zhiyi Huang, Yuanying Huang, Xijing Lian, Wanjia Zou
China University of Petroleum, Beijing