Public concerns may lead to the emergence of small niche markets for radical alternatives, constituted by demand from ‘moral consumers’.
(Geels and Penna, 2015: 71)
But these are not enough people to build a new industry on of course – see Harrison and Mikler
All interviewees stated, often quite bluntly, that they perceived no business case for climate innovation specifically. This is because they did not believe consumers were sufficiently demanding less GHG emissions-intensive products, unless they can be provided at the same or lower cost. With the costs and risks involved in climate innovation for such products, there was therefore limited incentive to invest in them.
As one interviewee said, “the options around the consumer driving it are fairly limited”, while another noted that “we can’t build a model around […] the top two per cent of consumers who will buy green products”.
(Mikler and Harrison, 2013:424)
Mikler, J and Harrison, N. 2013. Climate Innovation: Australian Corporate Perspectives on the Role of Government. Australian Journal of Politics and History, Vol. 59, (3), pp.414-428.