IDEAS home Printed from https://ideas.repec.org/p/hhs/slueko/2014_002.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: http://pub.epsilon.slu.se/11024/7/matsdotter_e_etal_140303.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Cohen, Mark A. & Vandenbergh, Michael P., 2012. "The potential role of carbon labeling in a green economy," Energy Economics, Elsevier, vol. 34(S1), pages 53-63.
    2. Mika Kortelainen & Jibonayan Raychaudhuri & Beatrice Roussillon, 2016. "Effects Of Carbon Reduction Labels: Evidence From Scanner Data," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1167-1187, April.
    3. Kiesel, Kristin & Villas-Boas, Sofia B, 2007. "Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9sx3j5hv, Department of Agricultural & Resource Economics, UC Berkeley.
    4. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, March.
    5. Gadema, Zaina & Oglethorpe, David, 2011. "The use and usefulness of carbon labelling food: A policy perspective from a survey of UK supermarket shoppers," Food Policy, Elsevier, vol. 36(6), pages 815-822.
    6. Aradhna Krishna & Uday Rajan, 2009. "Cause Marketing: Spillover Effects of Cause-Related Products in a Product Portfolio," Management Science, INFORMS, vol. 55(9), pages 1469-1485, September.
    7. Kiesel Kristin & Villas-Boas Sofia B, 2007. "Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-40, April.
    8. Kiesel Kristin & Villas-Boas Sofia B, 2007. "Got Organic Milk? Consumer Valuations of Milk Labels after the Implementation of the USDA Organic Seal," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 5(1), pages 1-40, April.
    9. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
    10. Cason, Timothy N. & Gangadharan, Lata, 2002. "Environmental Labeling and Incomplete Consumer Information in Laboratory Markets," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 113-134, January.
    11. Annika Carlsson-Kanyama, Anna-Lisa Linden, 2001. "Trends in food production and consumption: Swedish experiences from environmental and cultural impacts," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 4(4), pages 392-406.
    12. John List & Craig Gallet, 2001. "What Experimental Protocol Influence Disparities Between Actual and Hypothetical Stated Values?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 241-254, November.
    13. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
    14. Jerome Vanclay & John Shortiss & Scott Aulsebrook & Angus Gillespie & Ben Howell & Rhoda Johanni & Michael Maher & Kelly Mitchell & Mark Stewart & Jim Yates, 2011. "Customer Response to Carbon Labelling of Groceries," Journal of Consumer Policy, Springer, vol. 34(1), pages 153-160, March.
    15. Nunes, Paulo A. L. D. & Schokkaert, Erik, 2003. "Identifying the warm glow effect in contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 231-245, March.
    16. Faye Duchin, 2005. "Sustainable Consumption of Food: A Framework for Analyzing Scenarios about Changes in Diets," Journal of Industrial Ecology, Yale University, vol. 9(1‐2), pages 99-114, January.
    17. Jens Hainmueller & Michael J. Hiscox & Sandra Sequeira, 2015. "Consumer Demand for Fair Trade: Evidence from a Multistore Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 242-256, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elofsson, Katarina & Bengtsson, Niklas & Matsdotter, Elina & Arntyr, Johan, 2016. "The impact of climate information on milk demand: Evidence from a field experiment," Food Policy, Elsevier, vol. 58(C), pages 14-23.
    2. Mika Kortelainen & Jibonayan Raychaudhuri & Beatrice Roussillon, 2016. "Effects Of Carbon Reduction Labels: Evidence From Scanner Data," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1167-1187, April.
    3. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    4. James Hilger & Eric Hallstein & Andrew W. Stevens & Sofia B. Villas-Boas, 2019. "Measuring Willingness to Pay for Environmental Attributes in Seafood," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 307-332, May.
    5. Richard Friberg & Mark Sanctuary, 2018. "Market stealing and market expansion: an examination of product introductions in the organic coffee market," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(2), pages 287-303, April.
    6. Hallstein, Eric & Villas-Boas, Sofia Berto, 2009. "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.
    7. Villas-Boas, Sofia B & Taylor, Rebecca & Krovetz, Hannah, 2016. "Willingness to Pay for Low Water Footprint Food Choices During Drought," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt9vh3x180, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Villas-Boas, Sofia B & Copfer, Jackie & Campbell, Nica, 2021. "Preferences for Sustainability and Supply Chain Essential Worker Conditions: Survey Evidence during COVID-19," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt0nv2n39w, Department of Agricultural & Resource Economics, UC Berkeley.
    9. Lanz, Bruno & Wurlod, Jules-Daniel & Panzone, Luca & Swanson, Timothy, 2018. "The behavioral effect of Pigovian regulation: Evidence from a field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 87(C), pages 190-205.
    10. Hallstein, Eric & Villas-Boas, Sofia B., 2013. "Can household consumers save the wild fish? Lessons from a sustainable seafood advisory," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 52-71.
    11. Vera Danilina, 2017. "Polarisation of Eco-Labelling Strategies," Working Papers 2017.26, FAERE - French Association of Environmental and Resource Economists.
    12. Lee, Yinjin & Bateman, Alexis, 2021. "The competitiveness of fair trade and organic versus conventional coffee based on consumer panel data," Ecological Economics, Elsevier, vol. 184(C).
    13. Aysegul Kanay & Denis Hilton & Laetitia Charalambides & Jean-Baptiste Corrégé & Eva Inaudi & Laurent Waroquier & Stéphane Cézéra, 2021. "Making the carbon basket count: Goal setting promotes sustainable consumption in a simulated online supermarket," Post-Print hal-03403040, HAL.
    14. Yuki Yamamoto & Kenji Takeuchi & Takayoshi Shinkuma, 2012. "Are There Price Premiums for Certified Wood?Empirical Evidence from Log Auction Data in Japan," Discussion Papers 1209, Graduate School of Economics, Kobe University.
    15. Vera Danilina, 2017. "Trade Integration and the Polarisation of Eco-Labelling Strategies," AMSE Working Papers 1725, Aix-Marseille School of Economics, France.
    16. Philip Garland Gayle & Jin Wang & Shengnan Fang, 2023. "The Organic food price premium and its susceptibility to news media coverage: evidence from the US milk industry," Applied Economics, Taylor & Francis Journals, vol. 55(28), pages 3296-3315, June.
    17. Yamamoto, Yuki & Takeuchi, Kenji & Shinkuma, Takayoshi, 2014. "Is there a price premium for certified wood? Empirical evidence from log auction data in Japan," Forest Policy and Economics, Elsevier, vol. 38(C), pages 168-172.
    18. Mamouni Limnios, Elena & Schilizzi, Steven G.M. & Burton, Michael & Ong, Angeline & Hynes, Niki, 2016. "Willingness to pay for product ecological footprint: Organic vs non-organic consumers," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 338-348.
    19. Bougherara Douadia & Ropars-Collet Carole & Saint-Gilles Jude, 2022. "Impact of Private Labels and Information Campaigns on Organic and Fair Trade Food Demand," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 20(1), pages 39-59, May.
    20. Hannah Krovetz & Rebecca Taylor & Sofia B. Villas-Boas, 2018. "Willingness to Pay for Low Water Footprint Foods during Drought," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 251-291, National Bureau of Economic Research, Inc.

    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; Animal Welfare Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:slueko:2014_002. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Elizabeth Hillerius (email available below). General contact details of provider: https://edirc.repec.org/data/iesluse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.