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Design+ Designing CO offsets w/personal identity
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Can carbon credits and green certificates fully solve in the market, as exemplified by many sustainable fashion
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the climate change crisis? The answer is no. Critics products that have successfully adopted this strategy.
argue that carbon credits serve as a band-aid solution, This marketing approach makes auto dealerships the
influenced by the psychological tendencies of both ideal venue to promote green certificates, given their pivotal
buyers and suppliers. In contrast, micro measures, role as the interface between customers and their point of
such as joining an environmental club, entail small, purchase. By showcasing the green certificate program
actionable steps with small measurable changes leading as an integral part of responsible auto ownership, dealers
to large, sustained behavioral changes. There is a need can nudge consumers toward becoming environmentally
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for micro solutions such as green certificates, which offer conscious buyers, igniting a localized impact.
a nuanced, customer-focused approach to environmental
responsibility that embodies the principle of Pigouvian Additionally, due to their direct interaction with
taxation. Green certificates function as a non-traditional, consumers, dealerships can facilitate faster adoption
voluntary form of carbon tax, representing a one-time fee by educating consumers about the positive aspects of
equivalent to a vehicle’s lifetime carbon emissions. The green certificates, offering customized products, and
funds collected from green certificates are earmarked and promptly addressing customer concerns interactively.
utilized primarily toward nature-based mitigation efforts, This personalized approach benefits the dealership in
such as tree planting, thereby directly linking the cost to creating a long-term relationship within the community
tangible environmental benefits. The amount associated and customers committed to sustainability. A suggested
with the green certificate is tailored to vehicle emissions method of marketing is shown in Figure 5.
and calculated based on factors like fuel type, efficiency, The marketing of green certificates can be extensive,
and expected usage. Furthermore, it incorporates even within North America alone. According to the
additional information that can enhance the overall National Automobile Dealer Association, there were
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quality of life, focusing on individual actions. When 16,835 franchised light-vehicle dealers in the United States,
aggregated, these individual actions can lead to a bigger collectively selling 15.5 million light-duty vehicles in 2023.
macro impact. Total light-vehicle dealership sales exceeded USD1.2
trillion. In Canada, there were 4,561 new car dealers in
4. The marketing of green certificates 2024, and these figures are expected to grow. Even if
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Green certificates can serve as a marketing tool to promote only 10% of the dealers choose to adopt green initiatives,
conscious environmental responsibility. The mechanism the club’s membership base could become substantial.
involves nudging consumers to be more eco-friendly in As illustrated in Figure 6, “going green” at dealerships
various creative ways. For example, integrating green often remains limited to superficial gestures such as
certificates as a default option at the point of car sales, unless exterior decorations, rather than aiming for substantive
actively declined, can enable small changes to accumulate changes in lifestyle proposed by the environmental club.
into a significant impact. The concept of nudging in Advocating for Leadership in Energy and Environmental
marketing was awarded an Economic Nobel prize for Design certification or implementing its processes in car
studying behavioral economics. By reviewing different dealership operations is not the only way to “go green”. The
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types of nudges, promotion tactics can be tailored to automobile industry’s contribution to combating climate
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new car purchases for different cultures and regions, change needs to be far more comprehensive and systemic.
considering the demographics of the targeted audience. In
doing so, awareness of climate change solutions aimed at
enhancing quality of life can be bundled with vehicle sales,
just like insurance is commonly included with automobile
purchases.
Equally important, green certificates incorporate
an element of conspicuous consumption that allows
consumers to publicly signal their environmental
commitment to friends and the wider public. Driving
a car as a “member of a club”, consumers can gain social
recognition while reinforcing their sustainable behaviors.
This can satisfy the need of buyers (demanders) of carbon
credits and may ultimately compete with other brand- Figure 5. Auto showroom accessories
name green products that are already successfully accepted Source: https://juniordavis.com/news/automotive-promotional-products.
Volume 2 Issue 3 (2025) 5 doi: 10.36922/DP025100013

