Mitigating Greenwashing Across World Regions: An Integrated Behavioral and Regulatory Approach
DOI:
https://doi.org/10.54536/ajec.v4i1.4130Keywords:
Behavioural Economics, Environmental Policy, Environmental Sustainability, Greenwashing, Net ZeroAbstract
This research examines greenwashing across global regions and proposes an integrated behavioural-regulatory intervention framework to mitigate these practices. Using a systematic literature review and VOS viewer software, the study analyzed 2,098 peer-reviewed articles from six databases ranging from 2009 to 2024. Findings show that the energy sector is the most affected by greenwashing, followed by the fashion and food industries. The U.S. has the highest greenwashing rate at 36.8%, with Europe at 35.8% and Africa at 2.2%. The study highlights that weak enforcement of environmental regulations and over-reliance on regulatory measures contribute to greenwashing. It proposes a framework that integrates behavioural economics with regulatory strategies to combat greenwashing, aiming to enhance the literature on environmental, social, and governance (ESG) issues. The findings have significant implications for corporate governance and environmental ethics, advocating for a multidisciplinary approach to address greenwashing globally.
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