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Adoption of Green Technology: A Diffusion and Learning Process of Consumers

C. Chatterjee, P. Mozumder


Concerned consumers for environmental wellbeing judge the quality of products by their environmental attributes. Therefore, the adoption pace of environment friendly production methods greatly depends on consumers’ preferences. We present a model that explains how the adoption of environment friendly technologies is possible due to the dissemination of knowledge amongst consumers. Upon updating their knowledge of environmental attributes, consumers revise their willingness to pay for different products. Public sponsored strategies change consumers' preferences, and the result is a distinct adoption pace of environment friendly technologies. Applying the Bayesian learning technique, herein we argue that the adoptions of environment friendly technologies are the consumers’ decisions, not the producers’. This is a single model that, using numerical examples, portrays how different public policies modify the adoption pace of environment friendly green technologies.


Green technology, technology adoption, environmental awareness, information disclosure, Bayesian learning.

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