The Impact of Environmental Labelling on Consumer Preference: Negative vs. Positive Labels

Abstract

Eco-labels in use today signify environmentally benign outcomes: "Choose this product, it is better for the environment than the average product." Another strategy would be to indicate negative outcomes with the purpose of trying to persuade consumers to avoid a product: "Do not choose this product, it is worse for the environment than the average product." In a computer-based experiment, it was investigated how these two types of labels affected preference for some everyday products. Individuals who had a weak or no interest in environmental issues were unaffected by either kind of label. Individuals with an intermediate interest in environmental issues were more affected by a negative label than by a positive label. Individuals with a strong interest in environmental protection were equally affected by the two kinds of labels.