Green consumerism in Lebanon : an assessment of factors that influence consumer's willingness to buy a "Green" car

Abstract

Nowadays, the whole world is facing a global climate change due to GHG emissions. Transportation is the second source of air pollution in the world. This thesis is treating the green consumerism within the automotive industry. Specifically, it assesses the factors that influence the willingness of consumers in Lebanon to buy a "green" car in an attempt to reduce air pollution and therefore climate change. This study is an environmental economic study in that it uses a Contingent Valuation Method (CVM) and assesses Willingness to Pay (WTP) of consumers for environmental protection. In addition, it can also be considered a behavioral study in that it highlights the main theories of behavior and it studies environmental behaviors. The study model is designed by Kanbar (2006) and it combines two theories: (1) the bahavioral approach to the rational choice theory of collective action (Ostrom, 1998) and (2) the Value-Bilief-Norm (VBN) theory of environmentalism (Stern et al., 1999). The model accounts for various variables that show their significance in shaping decision-making; namely measures of values, New ecological Paradigm (NEP). Awareness of Consequences (AC-beliefs), Ascription of Responsibility beliefs (AR-beliefs), personal norms, reciprocity norms, reputation and trust. A questionnaire was adopted from Kanbar (2006) in a short version. The objective was to examine the determinants of environmental behavior. As such, the respondents were given the choice between different plans; such as bying a "green" car or paying to reduce air pollution. The sample consisted of students from Notre Dame University (NDU)-Louaize, an institution of higher education inLebanon. The sample is randomly selected from the graduate-level students, those seeking a master degree in Business Administration. A thorough descriptive analysis and cross tabulations using Pearson Chi-Square tests are performed using SPSS to test for statistical significance.