ABSTRACT

According to research performed by Marks and Spencer, the UK consumer market contains a 'deep green' group of consumers representing 8% of the market, and a 'lighter green' group representing 28%. Many research projects have suggested that even among those consumers who might be inclined to think about sustainability issues, only a small percentage will make purchasing decisions based on the environmental information displayed on a product label or on the web. Investors need to understand a company's future cash flows, which derive from the ability to sell products. Policy-makers could benefit greatly from strategic use of the concept of Full Product Transparency (FPT). FPT can lend a very strategic intent to an array of existing policy instruments by aligning them to common goals, strategies, and visions. Subsidies can help a new industry to hold its own in the early stages of its development.