Everywhere we look, consumers tell us that they want to buy green products, governments want a green economy, producers are committing to green production, and companies are pursuing climate capitalism. Amidst this consumer demand for ‘green’ lies the question: What does green mean? Green can stand for a host of attributes, from recyclable to nonpolluting to energy efficient. But regardless of the definition, only a minority of today’s consumers will pay a premium for a green product. For example, some consumers pay an incremental cost of $6,225 to own a Toyota Prius rather than a Toyota Corolla. In the same way, some shoppers are willing to pay more for organically grown food. If all else is equal, a majority of purchasers will choose the green product. But most purchasers—consumer or otherwise—will not pay a higher price or premium. The same is true throughout industry: green can refer to a company’s...