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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
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