Vol. 1, Issue 12, Part I (2015)

Abstract
The term, global warming, refers to the increase in the temperature and the related changes in the climate caused by accumulation of greenhouse gases in the lower atmosphere. The increase in greenhouse gases makes an inescapable harm to the living beings and the entire Earth. Having identified the problem, decisions have been taken to control the human activities to protect the environment with the interference of the international community. If the consumers are aware of the danger of the effect of the on-going climate change, they can make adjustments in their demand pattern and reduce or prevent the possible adverse effects on the environment. Therefore, this study aimed to identify the appropriate instrumental variables which are necessary to prevent or reduce the consumption of people that leads to global warming. The study revealed that People in slums and shanties cannot be effectively encouraged for an environmentally friendly consumption behavior unless they are settled in a better environment. The strongest variable that determines the consumer response was the consumption related global warming knowledge. If the people are well-educated on the problem, it is the most effective way of directing them for an environmentally friendly consumption. However, the global warming knowledge of people seems to have a significant interaction with education level of people and the socio-economic well-being. The study further revealed that female leadership in consumption decision is more environmental friendly.