Abstract
Voluntary "eco-friendly" consumer actions are increasingly critical for mitigating environmental damages. Focusing on electric vehicle (EV) adoption, we examine how the identity associated with taking an eco-friendly action influences its uptake. Analyzing New York registration data, we find that Elon Musk's acquisition of Twitter decreased the prevalence of Teslas among EVs registered in liberal ZIP codes by 7.8 percentage points (19%). Instead, consumers in these ZIP codes substituted to relatively inefficient EVs that had lower environmental benefits. In a complementary online experiment pilot, we demonstrate that consumers actively avoid information about the relative cleanliness of Teslas when it conflicts with their anti-Musk identity. Taken together, these findings suggest that (i) consumers may prioritize identity alignment over environmental impact when making eco-friendly choices and (ii) consumers may engage in motivated reasoning to justify this trade-off.