Behavioral Responses to Science-based Eco-labeling: Gold, Silver, or Bronze
Date
2018-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Applied Economics and Statistics, University of Delaware, Newark, DE.
Abstract
This study uses unique data collected from field experiments to investigate consumer willingness to pay (WTP) for otherwise homogeneous commodities that provide different levels of environmental services. On average, individuals are willing to pay more for products that provide a higher level of ecosystem services. This effect is larger when the label contains symbols that explicitly differentiate the levels and the magnitude is further amplified when it contains brief information on the scientific basis for the levels. However, our results also suggest that the WTP premium for the superior product is smaller than the discount in WTP for the inferior product.
JEL Classifications: D12, Q55, M31, L10
Description
Keywords
Eco-labeling, Ecosystem services, Field experiment, Consumer preferences
Citation
Kecinski, M., T. Li, K.D. Messer. “Behavioral Responses to Science Based Eco-labeling: Gold, Silver, or Bronze.” Applied Economics and Statistics Research Report, University of Delaware, RR18-04.