Study with University Participation: Companies should reduce, not compensate for, emissions

26 June 2023

Photo: Peggychoucair/Pixabay

For greater sustainability, companies can reduce emissions when manufacturing their products or compensate for emissions. Both help the environment. But do consumers distinguish between these measures when buying products and services?

A study conducted by Kühne Logistics University, Universität Hamburg, and the University of Tennessee has now shown that consumers are indeed prepared to pay substantially more for products when companies reduce their emissions instead of compensate for them. The only exception is if the emissions cannot be influenced by the company itself, for example, when there are emissions from the exploitation of raw materials. Then compensation and reducation are viewed equally.

The study was published in Production and Operations Management. Dr. Nils Roemer and Prof. Dr. Guido Voigt from the Institute for Logistics und Supply Chain Management in the Faculty of Business Administration took part.