Sujal Kumar Poddar
“Why is the eco-friendly bottle always the more expensive one?” This was a question I heard a thirteen-year-old girl ask her father at a supermarket. The father shrugged, visibly unsure, and reached for the cheaper plastic bottle. That small moment stuck with me—not as a judgment, but as a symbol of the dilemma many Indian consumers quietly face every day.
We’re increasingly told that sustainability starts with our choices: switch to bamboo toothbrushes, carry metal straws, buy organic vegetables, wear clothes made from recycled fabric. But in a country where the middle class is constantly juggling aspirations and affordability, sustainable choices often feel like a luxury rather than a norm. And that’s the core question my research for the EPAYF fellowship tried to explore: Can sustainable choices be made affordable in India?
The Affordability Gap in Green Consumption
From biodegradable packaging to energy-efficient appliances, eco-friendly alternatives are often expensive. Research reveals that these products may cost between 20% to 80% more than the traditional ones. In the case of many middle-class households, this price gap is not just a financial obstruction; it creates a psychological resistance to considering a switch. We tend to assume that people don’t buy green because they don’t care. What if the issue is the opposite: they do care but can never really afford to show it?
So, when these climate-conscious behaviors meet real market lives, this remains not just a consumer problem; it turns into a policy gap. If India is serious about inclusive climate adaptation, it must recognize that affordability is a form of climate justice.
What I Did: Following the Middle-Class Trail
To understand this better, I focused my research on India’s urban middle class, particularly families earning between INR 5–15 lakhs annually. These are not the wealthiest, but not the poor either—they are aspirational, aware, and highly responsive to price.
My approach involved a mixed-methods framework:
● I looked at market data, comparing prices of green and non-green alternatives in sectors like packaging, home appliances, and daily consumables.
● I studied government policy documents on GST and green subsidies to understand fiscal
barriers.
● And most importantly, I conducted a targeted household survey in New Town, asking
people how they think about eco-friendly purchases, what stops them, and what might change their minds.
While the sample was small and exploratory, the insights were powerful.
What I Found: Nudges, Not Guilt
Here’s the headline: most people I spoke to wanted to make sustainable choices—but they didn’t want to feel punished for it.
One respondent put it bluntly: “I’m not against using eco-friendly stuff, but why should I pay 50 rupees extra for it when my electricity bill is already through the roof?”
This response wasn’t selfish—it was honest. And it showed me that guilt is not a scalable motivator. People don’t need more moral pressure; they need better systems.
So what could those systems look like?
Bridging the Gap: Policy and Behavioral Levers
The answer lies in a mix of policy reforms and behavioral economics. Here are a few key levers that emerged from my research:
- GST Reforms: Many green products are taxed at par or even higher than polluting
alternatives. A targeted GST exemption or reduction for certified sustainable products could immediately narrow the price gap. - Targeted Subsidies: Just like we have subsidies for LPG or EVs, why not offer micro-subsidies for first-time buyers of eco-friendly products?
- Green Nudges: Behavioral nudges—like defaulting delivery packaging to eco-friendly options or bundling sustainable choices as part of “value packs”—can help consumers make better choices without friction.
These ideas aren’t new globally, but they need local adaptation for India’s urban consumption patterns. And crucially, they need to be communicated not just as climate solutions, but as smart economic choices.
Why It Matters: Climate Justice Starts at Checkout
For India, climate action cannot be a top-down story told through solar plants and electric vehicles alone. It must also include the everyday consumer who wants to be green but can’t afford to be.
Affordability is not just an economic issue—it’s a moral one. When sustainable choices are only available to the rich, we risk turning climate adaptation into a form of social exclusion.
By bringing fiscal policy and behavioral science together, we can democratize sustainability. We can make it less about sacrifice and more about smart, inclusive design.
What I’ve Learned Personally
Working on this project challenged many of my assumptions. As someone with a finance background, I’ve often thought in terms of cost, value, and market signals. But this research showed me how emotions, habits, and perceptions play just as big a role in driving consumption choices.
It also reminded me that the most effective policies don’t shout at people to change—they help them change. Not by guilt. Not by force. But by removing the small frictions that stand in their way.
The Road Ahead
This blog is just a snapshot. The project continues to evolve, and my next steps involve designing an actionable policy brief with specific recommendations for fiscal instruments and green nudges. I also hope to expand the survey, perhaps collaborating with civil society organizations or local governance bodies to test these interventions in the real world.
One idea I’m particularly excited about is the concept of a “Green Basket” pilot—a curated package of affordable eco-friendly products with GST relief, distributed through urban retail chains or housing societies. By tracking purchase behavior and feedback, we could assess real-time impact and fine-tune policy models.
Final Thoughts: Sustainability Shouldn’t Be a Sacrifice
India is at a crossroads. Our cities are growing, our consumption is rising, and the urgency to act on climate is undeniable. But we cannot afford to build a green future that leaves people behind. If climate action is to be truly inclusive, we must make sustainable choices both accessible and aspirational.
The middle-class consumer should not have to choose between doing good and doing well. With thoughtful policy, empathetic design, and evidence-based action, we can make sure that sustainability is not just a premium lifestyle—but a shared default.
And perhaps someday soon, when a father in a store reaches for the greener option, his daughter won’t need to ask why it costs more. Because it won’t.
References
On Green Premiums & Sustainable Consumption in India
- CEEW (2023) – Making Clean Affordable: India’s Path to Equitable Green Transitions
- NITI Aayog (2021) – Handbook on Sustainable Consumption and Production
- IndiaSpend (2022) – Why Are Eco-Friendly Products So Expensive in India?
On Behavioral Nudges
- Thaler, R. & Sunstein, C. (2008) – Nudge: Improving Decisions About Health, Wealth, and Happiness
- Sharma, R. & Soman, D. (2021) – Behavioural Science and Policy in India: Opportunities and Challenges
On GST & Fiscal Incentives
- Press Information Bureau (GoI) – GST Rates on Environment-Friendly Goods
- CSE (Centre for Science and Environment) – The Taxation Gap: Why Green Products Still Feel Heavy on the Wallet
On Urban Consumption and Middle-Class Behavior
- KPMG & Retailers Association of India (2020) – Indian Retail: Time to Reinvent
- Brookings India (2019) – Who is the Indian Middle Class?
Optional/International Comparative References
- OECD (2022) – Green Nudges: Insights from Behavioral Economics
Acknowledgement: The author would like to thank the IMPRI Fellowship team for their continuous support and mentorship throughout this project.
About the contributor: Sujal Kumar Poddar is a student of BBA (Finance), Amity University Kolkata. He is a UN DESA SDG Advocate, International Delegate, HPAIR, Aspire Leaders Program Fellow, Founder, God’s Wish Foundation, and Co-Founder, Femrage
Kolkata, West Bengal. He is a fellow of EPAYF 2.0 – Environment Policy and Action Youth Fellowship, Cohort 2.0.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
Read more at IMPRI:
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Acknowledgement: This article was posted by Khushboo Dandona, a research intern at IMPRI.
