Buying Greener Products Doesn't Always Lead to a Greener Outcome, New Study Finds

Research reveals how eco-conscious consumers can unintentionally increase environmental harm when companies adjust prices across product lines

BALTIMORE, June 9, 2026 — Consumers often assume that choosing more environmentally friendly products helps reduce environmental harm. New research suggests the reality may be more complicated.

As demand for eco-sensitive products grows, some companies respond in ways that can unintentionally increase sales of older, less efficient products, potentially offsetting some of the environmental benefits consumers hope to achieve.

The study, “Can Rising Eco-sensitivity Hurt Sustainability? Eco-impact of Durable Goods Innovations,” published in the INFORMS journal Marketing Science, found that increasing consumer concern for the environment can sometimes create market dynamics that work against sustainability goals.

“It’s a common assumption that as consumer concern for the environment increases, the amount of environmental harm will go down,” said K. Sudhir, co-author of the study and professor at Yale University. “While higher eco-sensitivity often leads to more sustainable outcomes, we found that in some cases firms respond by changing the prices of less eco-sensitive products to maintain sales across their product lines.”

The researchers examined durable goods markets such as appliances, consumer electronics and automobiles, where consumers periodically replace products with newer innovations.

The study highlights a challenge that emerges when companies offer both environmentally efficient products and legacy products. As environmentally conscious consumers gravitate toward greener options, firms may discount older, less efficient products to maintain demand. Those lower prices can attract additional buyers, increasing sales of products that consume more resources or generate greater environmental impacts.

Consider household appliances. As consumers increasingly purchase energy-efficient models, manufacturers may reduce prices on older models to keep inventory moving and preserve sales volume. The result can be increased demand for products that are less environmentally friendly, even as overall consumer awareness of sustainability grows.

“We found that rising eco-sensitivity does drive demand for products that are more efficient, which leads to less negative impact on the environment,” said Ramesh Shankar, co-author of the study and professor at the University of Connecticut. “However, when companies discount less efficient products to compensate for changing demand patterns, more consumers may purchase products that are less eco-sensitive.”

The researchers distinguished between two types of innovation: functional improvements that add features without improving efficiency, and use-efficiency innovations that reduce environmental harm during a product’s lifetime. Their analysis found that the environmental impact of rising eco-sensitivity depends not only on what consumers buy, but also on how firms adjust pricing and product strategies in response.

“What this tells us is that manufacturers, retailers and marketers need to think beyond simply offering a greener option,” said Yuan Jin, co-author of the study and professor at Texas Tech University. “Pricing decisions, product availability and replacement incentives all influence whether sustainability goals are ultimately achieved.”

The study also identified a more encouraging finding. Trade-in programs and recycling incentives reduced environmental harm while simultaneously improving firm profitability, suggesting that carefully designed incentives can help align business objectives with environmental goals.

“Durable goods markets involve long-term decisions about replacement and upgrades,” said Sudhir. “Understanding how consumers and firms respond over time is essential for designing policies that truly reduce environmental harm.”

The findings arrive as companies, policymakers and environmental organizations increasingly look to consumer behavior as a key driver of sustainability efforts. The research suggests that consumer intentions alone may not be enough. The environmental impact of greener purchasing decisions can depend heavily on how companies respond behind the scenes.

In other words, creating a more sustainable marketplace may require more than helping consumers make greener choices. It may also require ensuring that the incentives facing businesses lead those choices to produce the outcomes consumers expect.

Link to full PDF of the study here.

About INFORMS and Marketing Science

INFORMS is the world’s largest association for professionals and students in operations research, AI, analytics, data science and related disciplines, serving as a global authority in advancing cutting-edge practices and fostering an interdisciplinary community of innovation. Marketing Science, a leading journal published by INFORMS, publishes research on quantitative marketing, consumer behavior, and strategic decision-making. INFORMS empowers its community to improve organizational performance and drive data-driven decision-making through its journals, conferences and resources. Learn more at www.informs.org or @informs.

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