Consumer Preferences for Labels Disclosing the Use of Neonicotinoid Pesticides: Evidence from Experimental Auctions
By: Wei, Xuan ; Khachatryan, Hayk ; Rihn, Alicia
Wei, Xuan ; Khachatryan, Hayk ; Rihn, Alicia, Consumer Preferences for Labels Disclosing the Use of Neonicotinoid Pesticides: Evidence from Experimental Auctions, Journal of Agricultural and Resource Economics, Volume 45, Issue 3, September 2020, Pages 496-517
Neonicotinoid pesticide use in the U.S. ornamental horticulture industry continues to capture attention due to the potential health risks to pollinator insects. While several retailers have announced mandatory labeling policies for plants treated with neonicotinoids, little is known about how individual consumers react to a firmÕs disclosure of neonicotinoid use in production and the extent to which this additional information is valued. Here, we use a laboratory experiment to assess consumersÕ preferences for environmentally friendly production practices, focusing on neonicotinoid labeling. Despite broad consumer unfamiliarity with neonicotinoids, results show that consumers have differentiated preferences for neonicotinoid-related labels and information disclosure.