open access publication

Article, 2024

Positive, negative or graded sustainability labelling? Which is most effective at promoting a shift towards more sustainable product choices?

Business Strategy and the Environment, ISSN 0964-4733, 1099-0836, 10.1002/bse.3838

Contributors

Thøgersen, John B 0000-0003-0613-8062 (Corresponding author) [1] Dessart, François J 0000-0001-6783-5684 [2] Marandola, Ginevra 0000-0002-4076-4668 [3] Hille, Stefanie Lena [4]

Affiliations

  1. [1] Aarhus University
  2. [NORA names: AU Aarhus University; University; Denmark; Europe, EU; Nordic; OECD];
  3. [2] Joint Research Center
  4. [NORA names: Spain; Europe, EU; OECD];
  5. [3] Ministero dell'Economia e delle Finanze
  6. [NORA names: Italy; Europe, EU; OECD];
  7. [4] European Commission—DG Connect, Luxemberg, Luxemburg
  8. [NORA names: Luxembourg; Europe, EU; OECD]

Abstract

Abstract Sustainability labels convey information about different product attributes, such as its environmental impact, lifespan or ethical performance. The labelling can be either positive (only identifying the most sustainable products available on the market), negative (only identifying the least sustainable products available on the market) or graded (comparing the sustainable performance of a product with that of all other products on the market). We assess the relative performance of these three labelling approaches in terms of influencing product choices. A nationally representative sample of 1243 consumers from Germany, Spain and the Czech Republic participated in an incentive‐compatible online discrete choice experiment with random allocation to different labelling approaches. Compared with positive and negative labels, graded labels were most effective in guiding consumers towards more sustainable product choices. These findings support policy interventions that convey product sustainability with graded labels.

Keywords

Abstract, Czech, Czech Republic, Germany, National, Republic, Spain, allocation, approach, attributes, choice, choice experiment, consumers, discrete choice experiment, environmental impact, ethical performance, experiments, findings, grade labels, impact, information, intervention, labeling, labeling approach, lifespan, nationally representative sample, negative labels, online discrete choice experiment, performance, policy, policy interventions, product attributes, product choice, production, production sustainability, random allocation, representative sample, samples, shift, sustainability, sustainability labels

Data Provider: Digital Science