Effective environmental marketing of green cars: A nested‐logit approach

Using market data, we assess the effectiveness of an eco‐marketing campaign on purchases of ‘green’ vehicles. The eco‐marketing was designed as a quasi‐experiment, having one region exposed to the marketing while the other region was the control. A two‐level nested‐logit model consistent with utility maximization reveals the campaign had short‐term positive effects on green‐car sales. Results also indicate green‐car buyers come from highly educated communities. Age has a positive but non‐linear effect on green car sales.