We study how the supply of environmentalism, which is de…ned by psychic bene…ts (costs) associated with the purchase of high-environmental (low-environmental) qualities, a¤ects the way …rms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows …rms with more market power which they use to maximize pro…ts. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint.