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Behavioural responses to science-based eco-labelling: gold, silver, or bronze

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  • Tongzhe Li
  • Maik Kecinski
  • Kent D. Messer

Abstract

This study uses unique data collected from field experiments to investigate consumer willingness to pay (WTP) for otherwise homogeneous commodities that provide different levels of environmental services. On average, individuals are willing to pay more for products that provide a higher level of ecosystem services. This effect is larger when the label contains symbols that explicitly differentiate the levels. The effect magnitude is further amplified when it contains brief information on the scientific basis for the levels. However, our results also suggest that the WTP premium for the superior product is smaller than the discount in WTP for the inferior product.

Suggested Citation

  • Tongzhe Li & Maik Kecinski & Kent D. Messer, 2018. "Behavioural responses to science-based eco-labelling: gold, silver, or bronze," Applied Economics, Taylor & Francis Journals, vol. 50(39), pages 4250-4263, August.
  • Handle: RePEc:taf:applec:v:50:y:2018:i:39:p:4250-4263
    DOI: 10.1080/00036846.2018.1441522
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    Cited by:

    1. Rihn, Alicia & Wei, Xuan & Khachatryan, Hayk, 2019. "Text vs. logo: Does eco-label format influence consumers’ visual attention and willingness-to-pay for fruit plants? An experimental auction approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    2. Tongzhe Li & Kent D. Messer & Alisher Mamadzhanov & Jill J. McCluskey, 2020. "Preferences for local food: Tourists versus local residents," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 429-444, December.

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