The Impact of Green Disclosure Nudging in Online Reuse Markets: Evidence from a Natural Experiment

As the environment continues to deteriorate, for managers, the means of shifting consumer behavior to "green" is urgently needed. Information disclosure as a tactic to promote green consumption has been widely studied, which typically stimulates demand for new green products through cost disclosure. In contrast, the impact of environmental benefit information disclosure on green consumption, especially on online reuse platforms, remains to be ascertained. In this study, we examine the economic effects of a green disclosure nudge through a natural experiment. Drawing on daily sales data, we find that the green disclosure nudge can stimulate consumer demand and generate economic benefits. We provide suggestive evidence that this positive effect stems from an increase in consumers’ perceptions of the functional and symbolic value of used products, respectively. In addition, exploratory analysis shows that the nudge may have potential social benefits. The findings provide practical and theoretical implications for promoting green consumption.