Beyond Green Persuasion: How AI Green Nudges Foster Circular Consumption through Consumer Moral Elevation Under the Boundary Condition of Psychological Reactance

Abstract

Artificial intelligence (AI) is increasingly being used to influence consumers toward sustainable choices, yet limited research explains the psychological mechanisms through which AI-enabled green nudges encourage circular consumption behaviour. Drawing on nudge theory, moral emotion perspectives, and psychological reactance theory, this study examines the effect of AI Green Nudges (AIGN) on Circular Consumption Behaviour (CC), the mediating role of Consumer Moral Elevation (CME), and the moderating role of Psychological Reactance (PR) in the direct AIGN–CC relationship. Data were collected from 400 consumers in Pakistan and analysed using Hayes’ PROCESS Model 5. The findings demonstrate that AI Green Nudges significantly enhance Consumer Moral Elevation (β = 0.4014, p < .001), while Consumer Moral Elevation positively influences Circular Consumption Behaviour (β = 0.4496, p < .001). AI Green Nudges also exert a significant positive direct effect on Circular Consumption Behaviour (β = 0.3815, p = .0026). Furthermore, Consumer Moral Elevation significantly mediates the relationship between AI Green Nudges and Circular Consumption Behaviour, with a positive indirect effect (β = 0.1805, 95% CI [0.1287, 0.2376]). Psychological Reactance significantly moderates the direct relationship between AI Green Nudges and Circular Consumption Behaviour (β = −0.0877, p = .0217), indicating that the positive influence of AI green nudges weakens as psychological reactance increases and becomes nonsignificant at high levels of reactance. The study contributes to sustainability and AI marketing research by identifying a moral-emotional mechanism and psychological boundary condition underlying AI-enabled green nudging. The findings also provide practical guidance for designing AI sustainability interventions that encourage circular consumption while preserving consumer autonomy.

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