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Understanding the impact of consumer-oriented assurance schemes: A review of voluntary standards and labels for the environmental sustainability of agri-food products

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  • Koen Deconinck
  • May Hobeika

Abstract

Assurance schemes (certifications and labels) are widespread in the agri-food sector. This paper reviews the landscape of existing schemes, and the evidence on whether labels change consumer behaviour, and whether assurance schemes achieve positive change on the farm. The impact of existing labels on shopping behaviours appears limited: even for well-established schemes, market shares remain low, as factors such as taste, health, or price appear to dominate consumer decisions. Regarding farm-level effects, not all crops, standards, and geographies have been equally well studied, and many studies find no effect; but when an effect is found, it is usually positive. The paper identifies actions to improve the effectiveness and inclusiveness of existing and new assurance schemes, and also highlights the new trend of labels which communicate environmental impacts, rather than conformity with process or production requirements.

Suggested Citation

  • Koen Deconinck & May Hobeika, 2023. "Understanding the impact of consumer-oriented assurance schemes: A review of voluntary standards and labels for the environmental sustainability of agri-food products," OECD Food, Agriculture and Fisheries Papers 200, OECD Publishing.
    • Handle: RePEc:oec:agraaa:200-en
    DOI: 10.1787/af917674-en
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    More about this item

    Keywords

    Certification; Credence goods; Food systems; Hypothetical bias; Voluntary sustainability standards;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M3 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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