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Companies and consumers are more concerned about sustainability nowadays. The clothing industry is receiving more attention due to mass production and its significant impact on the planet. Fashion brands are introducing sustainable lines and circular economies in their business model to reduce their energy consumption, advocating for environmental protection and other activities. Yet, sustainable efforts suffer from indulgent and towering consumption. Do sustainability labels really promote moral behavior or are they leading to outrageous outcomes?

Rebound and moral licensing effects can be classified as unwanted negative consequences of moral behavior. This research shows to what extent these two effects can be a potential source of an ineffective sustainable policy in the clothing industry. This study uses a conjoint study to measure consumers’ willingness to pay and quantity purchase …