Recession-caused consumer behavior changes could help or hurt climate

Weakening economic strength of certain economies around the world coincides with a climate change crisis and other uncertainties such as labor shortages, supply disruptions, and the ongoing war in Ukraine. This can change consumer behaviors even more than an impending recession alone.

A recession may cause various consumption changes that can both hurt and benefit the environment—and certain businesses. Inflation-battered wallets and a weaker economy may cause consumers to cut back, but they may also seek out inexpensive options that are less likely to be sustainable versions of products. The pressure on people’s discretionary budgets makes less expensive, stripped-down versions of products and services popular—think private label brands, food trucks as a more affordable food service, and no-frills airlines. This popularity also offers new opportunities for secondhand and rental businesses in all kinds of categories—from fashion to furniture to electronics—benefiting the environment by reducing resource use.

Our latest research with US consumers on how they might change their behaviors in response to climate change confirms that behavior changes that are tweaks of habits such as increased recycling and reusing are more likely than changing creature comforts such as reducing the use of animal-based products, cars, and air conditioning/heating—even if the latter is already occurring especially in Europe in response to the energy crisis.

For more details, see Changes in Consumers' Habits Related to Climate Change May Require New Marketing and Business Models.