Advertising restrictions and sustainability transitions: does banning advertising of harmful products induce innovation in benign alternatives?

This research paper by Will McDowall and Anders Underthun shows that banning advertisements for harmful products can stimulate innovation in benign alternatives. Carefully designed advertising bans could be a useful part of the policy toolbox for stimulating sustainable innovation.

The research investigates the assumption that banning advertisements for a product leads to a decrease in the consumption of said product. The authors' study of the Norwegian beer market shows that banning ads for a harmful product (beer) can indeed stimulate innovation in benign alternatives (alcohol-free beer). In the article's conclusion, the authors suggest that "advertising bans could contribute to or accelerate sustainability transitions, by stimulating product innovation of benign alternatives, and promoting increased advertising of those alternatives. [...] advertising bans may be a useful component of a policy mix to drive transitions to greener products and socio-technical systems."

Some highlights:

• Bans on advertising are increasingly promoted by environmental activists.

• First study on the impact of advertising bans on product innovation.

• We use a case study of the Norwegian low/no-alcohol beer market.

• Advert bans can incentivise innovation in socially desirable alternative products.

• Advert bans can both destabilise regimes and foster niches if designed well.