Moderating role of policy incentive and perceived cost in relationship of environmental awareness and green consumption behavior

Abstract

Over time, environmental concerns have gained much importance and main debatable issue. Green products are becoming popular due to their positive impact on environment and their role in the green economy. However, the significance of environmental awareness, perceived cost, face culture and policy incentives on green consumption behavior is not fully examined in prior research. This research aimed to analyze the various dimensions impacting behavior regarding green consumption in China. Moreover, the moderating impact of policy incentives, perceived cost, and face culture is also explored. An internet-based survey was undertaken and findings indicate that environmental awareness serves as foundation for eco-friendly consumption. The transition from awareness to action is influenced by various factors. Among these, the perceived cost by consumers represents a significant barrier to green consumption, while face culture has a significant impact in encouraging green consumption. Interestingly, policy incentives do not exhibit any notable direct effect or moderating influence on green consumption practices of consumers.