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The Impact of Environmental Labelling on Consumer Preference: Negative vs. Positive Labels

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  • Gunne Grankvist

    ()

  • Ulf Dahlstrand

    ()

  • Anders Biel

    ()

Abstract

Eco-labels in use today signify environmentally benign outcomes: "Choose this product, it is better for the environment than the average product." Another strategy would be to indicate negative outcomes with the purpose of trying to persuade consumers to avoid a product: "Do not choose this product, it is worse for the environment than the average product." In a computer-based experiment, it was investigated how these two types of labels affected preference for some everyday products. Individuals who had a weak or no interest in environmental issues were unaffected by either kind of label. Individuals with an intermediate interest in environmental issues were more affected by a negative label than by a positive label. Individuals with a strong interest in environmental protection were equally affected by the two kinds of labels. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Gunne Grankvist & Ulf Dahlstrand & Anders Biel, 2004. "The Impact of Environmental Labelling on Consumer Preference: Negative vs. Positive Labels," Journal of Consumer Policy, Springer, vol. 27(2), pages 213-230, June.
  • Handle: RePEc:kap:jcopol:v:27:y:2004:i:2:p:213-230 DOI: 10.1023/B:COPO.0000028167.54739.94
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    References listed on IDEAS

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    1. Raghubir, Priya & Srivastava, Joydeep, 2002. " Effect of Face Value on Product Valuation in Foreign Currencies," Journal of Consumer Research, Oxford University Press, vol. 29(3), pages 335-347, December.
    2. Patrick Lemaire, 2007. "The Impact of the Euro Changeover on Between-Currency Conversions," Journal of Consumer Policy, Springer, vol. 30(4), pages 383-391, December.
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    Citations

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    Cited by:

    1. Jan Fiala & Ivica Toufarová & Stanislav Mokrý & Martin Souček, 2016. "Perception of Local Food Labelling by Generation Z: An Eye-Tracking Experiment," European Journal of Business Science and Technology, Mendel University in Brno, Faculty of Business and Economics, vol. 2(2), pages 152-159, December.
    2. Drescher, Larissa S. & Marette, Stephan & Roosen, Jutta, 2011. "Consumer Acceptance of Traffic-light Labelling on Food vs. Financial Products," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114431, European Association of Agricultural Economists.
    3. repec:eee:ecolec:v:140:y:2017:i:c:p:251-264 is not listed on IDEAS
    4. Mohamed Akli Achabou & Adel Rink, 2014. "Barrières et motivations pour la consommation des produits de la mode éthique en France," Working Papers 2014-138, Department of Research, Ipag Business School.
    5. Christopher Jeffords, 2014. "Preference-directed regulation when ethical environmental policy choices are formed with limited information," Empirical Economics, Springer, pages 573-606.
    6. Morten Mørkbak & Jonas Nordström, 2009. "The Impact of Information on Consumer Preferences for Different Animal Food Production Methods," Journal of Consumer Policy, Springer, vol. 32(4), pages 313-331, December.
    7. Olivier Bos & Béatrice Roussillon & Paul Schweinzer, 2016. "Agreeing on Efficient Emissions Reduction," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 785-815, October.
    8. Ynte Dam & Janneke Jonge, 2015. "The Positive Side of Negative Labelling," Journal of Consumer Policy, Springer, vol. 38(1), pages 19-38, March.
    9. Drescher, Larissa S. & Stephan, Marette & Roosen, Jutta, 2012. "Consumer’s thoughts about and willingness to pay for traffic-light labeled food and financial products," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123200, Agricultural and Applied Economics Association.
    10. Bansal, Sangeeta & Chakravarty, Sujoy & Ramaswami, Bharat, 2013. "The informational and signaling impacts of labels: experimental evidence from India on GM foods," Environment and Development Economics, Cambridge University Press, vol. 18(06), pages 701-722, December.
    11. Baddeley, Shane & Cheng, Peter & Wolfe, Robert, 2011. "Trade Policy Implications of Carbon Labels on Food," Commissioned Papers 122740, Canadian Agricultural Trade Policy Research Network.
    12. Hansla, Andre & Gamble, Amelie & Juliusson, Asgeir & Garling, Tommy, 2008. "Psychological determinants of attitude towards and willingness to pay for green electricity," Energy Policy, Elsevier, vol. 36(2), pages 768-774, February.
    13. Yoon-Na Cho, 2015. "Different Shades of Green Consciousness: The Interplay of Sustainability Labeling and Environmental Impact on Product Evaluations," Journal of Business Ethics, Springer, vol. 128(1), pages 73-82, April.
    14. Park, Ju Young, 2017. "Is there a price premium for energy efficiency labels? Evidence from the Introduction of a Label in Korea," Energy Economics, Elsevier, vol. 62(C), pages 240-247.
    15. Soyoung Seo & Hee-Kyung Ahn & Jaeseok Jeong & Junghoon Moon, 2016. "Consumers’ Attitude toward Sustainable Food Products: Ingredients vs. Packaging," Sustainability, MDPI, Open Access Journal, vol. 8(10), pages 1-19, October.
    16. de Boer, Joop & Boersema, Jan J. & Aiking, Harry, 2009. "Consumers' motivational associations favoring free-range meat or less meat," Ecological Economics, Elsevier, vol. 68(3), pages 850-860, January.

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