The Economic and Environmental Impacts of Advertising: Analyzing Effects, Challenges, and Opportunities for Promoting Sustainability

The climate crisis is one of the most critical global challenges today, with household consumption choices responsible for over 70% of global greenhouse gas emissions. Advertising plays a pivotal role in influencing consumer behavior, which, in turn, drives consumption patterns that significantly impact both the economy and the environment. From an economic perspective, advertising is an essential tool for stimulating demand and economic growth, shaping consumer preferences, and influencing market dynamics. However, these benefits often come at a high environmental cost, as advertising campaigns encourage materialistic values and unsustainable consumption habits that exacerbate climate change. This paper explores the direct and indirect environmental impacts of advertising, including its carbon footprint and its contribution to increasing consumption. Within the context of finance, advertising also plays a key role in affecting consumer spending and investment decisions, potentially reinforcing unsustainable financial practices. Furthermore, the paper examines the phenomenon of greenwashing, where companies use advertising to falsely promote themselves as environmentally friendly, potentially diverting attention from real sustainable efforts. The study assesses ongoing initiatives aimed at using advertising as a force for good, promoting sustainable consumption and environmentally responsible behaviors through green marketing. By analyzing the complex relationship between advertising, economics, environmental sustainability, and finance, this paper emphasizes the urgent need for the advertising industry to take greater responsibility for its environmental consequences and leverage its power to drive sustainable economic and financial practices, helping to mitigate the climate crisis.

The Economic and Environmental Impacts of Advertising: Analyzing Effects, Challenges, and Opportunities for Promoting Sustainability Keywords:

Advertising , Climate Change , Consumerism , Environmental Impact , Sustainability , Economics , Finance , Green Marketing