Eco-labels, conspicuous conservation and moral licensing: An indirect behavioural rebound effect

Sustainable consumption is a growing niche with an increasing number of initiatives aimed at lowering domestic environmental consumption footprints. Third-party assured product eco-labelling has emerged as a key governance mechanism to promote sustainable consumption. However, does the purchasing of eco-labelled products really support a transition towards more sustainable consumption? In this paper, we explore eco-labelling through the lens of the rebound literature. While theorizing of the rebound effect originated in energy economics and has long been centred on eco-efficiency, we extend its rationale to products that are associated with a price premium in return for added environmental quality attributes. Reporting on two inter-related studies into the link between purchasing of environmentally friendly products and different types of environmental resource consumption, we find that eco-labelled products flourish in more affluent economies that are characterized by higher levels of overall resource consumption; and that willingness to consume environmentally friendly products is positively related to higher individual carbon, water and material footprints. Hence, we argue that ecolabelling in its current form is inextricably linked to higher - rather than lower - levels of resource consumption. Consequently, the governance mechanism that underpins eco-labelling is associated with an indirect behavioural consumer rebound effect.