Consumer Preferences, Ecolabels, and the Effects of Negative Environmental Information

Consumers prefer ecolabeled products. However, little is known about the effects of ecolabels when consumers are simultaneously exposed to negative environmental information. We conducted a stated choice experiment in France with eight fish products that were either ecolabeled or unlabeled. Four types of negative information concerning the potential negative environmental consequences of catching wild fish or producing farmed fish were randomly administered to the participants. The data were analyzed by a mixed logit model. Several results emerged. First, there are positive ecolabeling effects on the willingness to pay (WTP) for fish. Second, ecolabeling cannot fully mitigate the negative effects on WTP of negative environmental information. Third, there is a positive effect on the WTP for substitute fish produced with the same production technology as the type of fish that receives negative environmental information.