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Got green milk? A field experimental trial of consumer demand for a climate label

Author

Listed:
  • Matsdotter, Elina

    () (Department of Economics, Swedish University of Agricultural Sciences)

  • Elofsson, Katarina

    () (Department of Economics, Swedish University of Agricultural Sciences)

  • Arntyr, Johan

    () (Ramböll Sverige AB)

Abstract

A majority of consumers claim to prefer climate-labelled food over non-labelled alternatives. However, there is limited empirical evidence that such labels actually influence consumer behaviour when shopping. The purpose of this study is to investigate whether qualitative information about a voluntary climate labelling scheme affects the demand for milk in the short run. In a randomized field experiment conducted in 17 retail stores in Sweden, the effects of a climate label on milk demand was measured. Results suggest that climate labelling increased demand for medium-fat climate labelled milk by approximately 7%. The response is significantly smaller than suggested by consumer surveys but larger than that observed in earlier studies of actual purchasing behaviour where quantitative information on climate impact was provided.

Suggested Citation

  • Matsdotter, Elina & Elofsson, Katarina & Arntyr, Johan, 2014. "Got green milk? A field experimental trial of consumer demand for a climate label," Working Paper Series 2014:2, Swedish University of Agricultural Sciences, Department Economics.
  • Handle: RePEc:hhs:slueko:2014_002
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    References listed on IDEAS

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    Cited by:

    1. Brunner, Florentine & Kurz, Verena & Bryngelsson, David & Hedenus, Fredrik, 2018. "Carbon Label at a University Restaurant – Label Implementation and Evaluation," Ecological Economics, Elsevier, vol. 146(C), pages 658-667.
    2. Shewmake, Sharon & Okrent, Abigail & Thabrew, Lanka & Vandenbergh, Michael, 2015. "Predicting consumer demand responses to carbon labels," Ecological Economics, Elsevier, vol. 119(C), pages 168-180.
    3. Vlaeminck, Pieter & Jiang, Ting & Vranken, Liesbet, 2014. "Food labeling and eco-friendly consumption: Experimental evidence from a Belgian supermarket," Ecological Economics, Elsevier, vol. 108(C), pages 180-190.
    4. Li, Xiaogu & Jensen, Kimberly L. & Clark, Christopher D. & Lambert, Dayton M., 2016. "Consumer willingness to pay for beef grown using climate friendly production practices," Food Policy, Elsevier, vol. 64(C), pages 93-106.

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    More about this item

    Keywords

    Climate labelling; milk; demand; voluntary policy instruments; randomized controlled trial;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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