Promoting eco-labeled food consumption in China: The role of information

Abstract

Consumers usually have little knowledge about eco-labels, and eco-labeled foods are still relatively uncommon. This study explores whether providing information about eco-labels can improve consumers’ valuations of eco-labeled foods. We tested three types of information—selfish (health related), altruistic (environment related), and combined (both)—and used a sample of 4523 Chinese consumers. Our results indicate that all three types of information increase consumers’ valuations of eco-labeled foods. Consumers express the largest valuation for eco-labeled foods when provided with selfish information, followed by altruistic information and combined information. We also found heterogeneous responses to all information treatments, with high-income consumers being more responsive to selfish information, while more highly educated consumers are more sensitive to combined information. We discuss the implications for designing policies to develop eco-labeled food markets, for example, by using redundant or identity-based information on the labels, especially in developing economies. [EconLit Citations: D12, Q13, Q18]