Scandinavian Working Papers in Economics
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Department Economics, Swedish University of Agricultural Sciences Working Paper Series, Department Economics, Swedish University of Agricultural Sciences

No 2014:2:
Got green milk? A field experimental trial of consumer demand for a climate label

Elina Matsdotter (), Katarina Elofsson () and Johan Arntyr ()

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.

Keywords: Climate labelling; milk; demand; voluntary policy instruments; randomized controlled trial; (follow links to similar papers)

JEL-Codes: D12; D83; Q18; Q54; (follow links to similar papers)

30 pages, February 13, 2014

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