Carlsson, F., Kataria, M., Lampi, E., Nyberg, E., & Sterner, T. (2021). Red, yellow, or green? Do consumers’ choices of food products depend on the label design?. European Review of Agricultural Economics.
Using a stated preference survey, we investigate to what extent consumers are willing to make costlier food consumption choices to decrease damages to health, the environment, and animal well-being. In particular, we investigate how the graphic design of the labels affects choice behaviour by comparing traffic–light and greyscale labels and plain-text description with each other. We found that the red colour in traffic lights seems to strengthen respondents’ preferences for avoiding the worst level of a collective attribute such as climate impact or antibiotics use, while the green colour strengthened preferences for the more private attribute, namely healthiness. On average, the price premiums for a green label compared with a red label is 52 per cent for healthiness, 64 per cent for both animal welfare and antibiotics, and 20 per cent for climate impact.