The Green consumer of Developing World


Indians are greenest consumers still feel guilt, Americans are least green but feel least guilt

Greener the consumer, greener will be the products and greener will be the nation. The answer of “how green the consumers are?” portrays how environmentally friendly and environmentally responsible we are. So here we have the answer again, the developing economies are greener with their environmentally responsible and environment friendly consumers compared to those of developed economies. This is the finding of the Greendex Survey, a collaborative study done by National Geographic and GlobeScan (a public opinion research consultancy).

The survey was first conducted in January 2008, across 14 countries and has since been repeated three times, in 2009, 2010 and 2012. The survey studies the consumer behavior provides an insight into what influences people in becoming more environmentally sustainable as consumers. The adopted methodology measures consumer behavior quantitatively through interviews related on their environmental knowledge and attitude regarding use of the products that have an impact on the environment. A score called “Greendex Score” is given to each consumer based on their performance in the survey, average of which gives a mean score for each country. Greendex score for a country reflects the impact the average consumer has on the environment in its country. To ensure the equal representation of various demographic groups a quota cap is used for education, age, gender and region of the consumers in all the countries.

The fourth survey, the Greendex Survey 2012 has been released recently which studied behavior of 17000 consumers across 17 countries through online survey.  The participating nations were India, China, Brazil, Hungary, South Korea, Mexico, Argentina, Russia, Germany, Spain, Sweden, United Kingdom, United States of America, Australia, France, Japan and Canada. Survey comprehensively measured consumers’ behavior on 65 areas within four categories- housing, transportation, food and consumer goods. Transport and housing were given higher weightages considering their higher impacts compared to food and consumer goods (See the fig.1).  

Figure 1. How Greendex was calculated

Housing: Indices such as size of house, number of inhabitants, room heating & cooling, water heating & cooling, renewable energy use, energy efficient appliances and water uses etc. were used to analyse the housing pattern in consumers. Indians, Brazilians, Chinese and Mexicans persist to be top scorers in the housing sub-index in 2012. India (41.4), at the second spot in 2008, has jumped to number one position (51.4) in this category. On the other hand, Americans, Canadians, Japanese and British remain to be bottom scorers (31-36) in 2012.  USA continues to be the least scorer (31.5) in the housing category in 2012. High scores of Indian and Brazilian consumers in housing category are attributed to its low use of electricity for residential heating and use of bio-fuel energy (in Brazil).

Transportation: personal or public transport, number and size of owned vehicle, ultra low emission vehicle, travel distance, walking, air travel, distance from working place etc. were used as the indices for transportation survey. China remains to be a top scorer (69) in the transportation category whereas India retained its third position (67.3) in 2012. Other top scorers continue to be emerging economies of Brazil (67.1) and Hungary (68.1). Developed economies of America, Canada, Australia and France persist to be bottom scorers (55-59), especially America which has the least transportation score 55.8 and 54.9 in 2008 and 2012 respectively.

In spite of the increase in personal automobile users in developing economies of India and China, consumers here prefer living close to their workplace, which positively impacts their scores. Habitual use of public transportation makes consumers more eco-friendly. This is particularly common in Chinese and Brazilian consumers which are among top scorers in the transportation category.

Food: For food survey, indices such as use of self and locally produced food, used of fruits, vegetables, beef, chicken, sea food, bottled water etc, were analysed. India continues to maintain its number one position (71.1) in the food category in 2012. Other top scorers persist to be China (63.7) and Australia (62.8) besides a new addition of Sweden (64.8) which was not surveyed in 2008. Mexican, Japanese, Americans and Spanish remain to be lowest scorers (53-57) in this category in 2012.

India has preserved its number one spot in the food category since 2008, partly due to infrequent beef consumption. On the other hand, Chinese consumers are most likely to consume locally grown food regularly, making China among the top scorers in the food category.

Consumer Goods: Environmental concerns for purchasing a product, recycle & reuse of product, less packaging, number of appliances per household etc. indices were used to analyse the consumer goods use pattern. India has shown a significant improvement in consumer goods scores, rising to first position (57.3) in 2012 from second (55.7) in 2008. China (56.8) and Mexico (54.5) remain to be top scorers of 2012 along with South Korea (57.1) which wasn’t surveyed in 2008. America continues to be the least scorer (44.2) in the consumer goods category in 2012. Other bottom scorers include developed economies of Canada, Australia and France (45-46).

The findings showcase that there has been a considerable increase in Indian and Chinese consumers who prefer buying used things over brand new ones. Beside this, at least half of the Chinese and Brazilian consumers avoid frequent use of excessively packaged goods. This makes them top scorers in the consumer goods category.

Table 1: Developed nations remains top performer

Category
      Greendex 2008
      Greendex 2012
Top Scorers
Bottom Scorers
Top Scorers
Bottom Scorers
Housing
Brazil (51.3)
USA (23.8)
India (51.4)
USA (31.5)
Transportation
China (73.6)
America (55.8)
China (69.0)
USA (54.9)
Food
India (72.0)
Japan (54.3)
India (71.1)
Mexico (53.6)
Consumer Goods
China (56.1)
USA (42.5)
India (57.3)
USA (44.2)
Overall ranking
India (58.0)
USA (42.4)
India (58.9)
USA (44.7)
Source: Greendex 2012, consumer choice and the environment- a worldwide tracking survey (a research project by National Geographic and Globe Scan), Score on a scale of 0-100.

The survey reflects the consistent leading trend by large developing economies such as India, Brazil and China for being top scorers since 2008. On the contrary, developed economies such as America and Canada persist to be bottom scorers.

The survey uncovers, the economic issues as the top national problem for consumers from developed countries such as America, Canada, Argentina, France and Australia. Political issues mess most Brazilian, Russian and Chinese consumers. Energy price and supply worries most to the Japanese consumer whereas national security threats most to the Mexicans. Strikes and labor unrest troubles Spanish where unemployment to the Swedish. Indian consumers are suffering most from money, greed and corruption.

The major developing countries’ consumers seem having high concerns to the climate change, global warming and environmental pollution issues unlike those from developed economies. The developed countries consumers were highly concerned to energy and fuel issues whereas war, terrorism, food safety and increasing population troubled most of them in the developing countries.
What is very troublesome is the developed nations like USA which is least green and still feels least guilty.

Sanjeev Kumar Kanchan

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