The impact of sustainability programs on consumer purchase behavior: Evidence from Amazon
2025
In 2020, Amazon launched the Climate Pledge Friendly (CPF) program to make it easy for customers to discover and shop for products with sustainability certifications. In this paper, we measure the causal impact of products qualifying for CPF on consumer purchase behavior. Using a dataset of about 45 thousand products spanning three categories, and a Difference-in-Differences identification strategy, we show that joining CPF leads to a 13.3% increase in Gross Merchandise Sales, 12.5% increase in sales, and 4.4% increase in shipped units in the next 12 weeks after adoption. These results are robust to different estimators, two identification strategies, longer time windows (24 and 48 weeks), and controlling for price, promotions, ad spend, and ratings and reviews. Finally, we show that products with low visibility as measured by product page views, and consumable products benefit the most from the program.
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