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Are Consumers Color Blind?: an empirical investigation of a traffic light advisory for sustainable seafood

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  • Hallstein, Eric
  • Villas-Boas, Sofia Berto

Abstract

This paper empirically investigates consumer response to a traffic light advisory for environmentally sustainable seafood, which was implemented in the seafood department of a regional supermarket chain in the United States. Green meant 'best choice'; yellow meant 'proceed with caution'; red meant 'worst choice'. Using a unique product-level panel scanner data set capturing sales information for 2 treatment stores and 8 nearby control stores, we apply a difference-in-differences identification strategy to estimate the impact of color-coded labels on consumers' purchases. We find that the advisory leads to no significant difference in total seafood sales. Green sales significantly increase an average of 29% per week; yellow sales significantly decrease an average of 27% per week; red sales show no significant difference in sales. Green products on a mercury safe list had the greatest increase in sales whereas yellow products not on the mercury safe list had the largest drop in sales.

Suggested Citation

  • Hallstein, Eric & Villas-Boas, Sofia Berto, "undated". "Are Consumers Color Blind?: an empirical investigation of a traffic light advisory for sustainable seafood," CUDARE Working Papers 120535, University of California, Berkeley, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucbecw:120535
    DOI: 10.22004/ag.econ.120535
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    References listed on IDEAS

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    1. Shimshack, Jay P. & Ward, Michael B. & Beatty, Timothy K.M., 2007. "Mercury advisories: Information, education, and fish consumption," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 158-179, March.
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    Cited by:

    1. 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.
    2. McCaffrey Sara Jane & Kurland Nancy, 2014. "Who defines “local”? Resistance to harmonizing standards in ethical markets," Business and Politics, De Gruyter, vol. 16(1), pages 191-219, April.
    3. 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 123200, Agricultural and Applied Economics Association.

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