Advertising, individual consumption levels, and the natural environment, 1900-2000

Abstract

One central determinant of global environmental change is the continued expansion of personal consumption levels. In order to more fully understand the relationship between consumption and environmental degradation, the determinants of consumption must first be identified. Prior research in this area has focused on economic factors, primarily personal disposable income and population demographic characteristics. The role of cultural factors, including advertising, has been actively mentioned in theoretical analyses of the driving forces of individual consumption. However, this has not been empirically tested. In this article, we conduct an analysis of the impact of advertising on consumption levels in the United States. We start with a theoretical discussion of the literature on advertising and consumption. Based on this literature, we establish three hypotheses regarding the relationship between advertising expenditure and personal consumption. These hypotheses are then tested using time series analysis over the time period 1900-2000. The results show that advertising significantly impacts overall consumption and that these effects vary by type of consumption. We conclude with a discussion of the implications of this analysis for further research into the driving forces of global environmental change. © 2007 Alpha Kappa Delta.