Competition for Status

The rationale behind status competition as a pro-environmental strategy can be summed up in a succinct quote by Publilius Syrus (100 B.C.), “A good reputation is more valuable than money.”

Competitive Altruism

 According to competitive altruism, people can gain status by engaging in pro-environmental behaviour, which is altruistic in nature. This seemingly-counterintuitive proposition can be explained using costly signaling theory, illustrated by purchase of green products.

Costly Signaling Theory

Green products are perceived to be more expensive and of inferior quality, yet bring about environmental benefits to society.  Purchasing green products, according to costly signaling theory, informs immediate audiences (e.g. the cashier and the salesperson) about the buyer’s characteristics, such as prosociality, concern for societal welfare, self-sacrifice, as well as ability and resources to incur costs without much damage. This helps to boost the individual’s reputation and status because such people are viewed to be more dependable and more desired by others to be friends, partners and spouses. On the other hand, buying non-green products may lead one to be viewed as being pro-self, selfish, and non-caring about societal welfare. Therefore, by buying green products, one can display one’s wealth and one’s environmentally-friendly nature, which is killing two birds with one stone!

Consider the sales of two hybrid cars.

toyotaSource: Toyota

In late 2006, sales of the Toyota Prius, a hybrid gas-electric automobile, soared by 68.9%, particularly after its tax credits expired which essentially increased its price. When queried about the top five reasons behind the purchase, Prius owners cited environmental-friendliness as the last reason. Instead, the top reason was making a statement to the whole world that ‘the owner cares’.

lexus_ls600hybrid_salesSource: Autoblogs

In a similar fashion, sales of the perceptibly-proenvironmental Lexus LS600h hybrid sedan,  rose over 300% despite its ultra-expensive price of >$100,000. This suggests that such purchases can signal the wealth and prosociality of the individual.

Interplay of Factors

Three factors – activation of status motives, public versus private display, and price – work together to influence prosocial behavior.

When status motives are aroused, it can spur people to select green products over non-green products, given that the price of green products is relatively higher than that of non-green products, and that the purchase of green products is done publicly rather than privately.

In other words, engaging in pro-environmental behavior presents an opportunity for the individual to portray a prosocial and sacrificial image of the self.