Do plastic warning labels reduce consumers' willingness to pay for plastic egg packaging? – Evidence from a choice experiment

Abstract

Reducing single-use plastic consumption in the food and beverage industry has become increasingly important to policymakers as non-recycled plastic waste escapes into ecosystems. Plastic waste may pose direct and indirect threats to human, animal, and ecosystem health. In this paper we examine how warning labels on plastic packaging affects consumer valuation for packaged food products. Using a choice experiment with a difference-in-difference design, we investigate whether putting warning labels on plastic egg crates reduces consumers' willingness to pay (WTP) for plastic packaging. Our results reveal that warning labels are effective at reducing consumers' WTP for plastics. Compared with pulp-based packaging, we estimate that plastic warning labels reduce WTP for clear plastic packaging on average by $1.02, and decreased WTP for plastic-based foam by $0.51. However, the effectiveness of the warning label depends on the information content of the warning. While labels warning against the negative impacts of plastic on health, the environment, and safety all reduced WTP for plastic, respondents in the health label treatment reduced their WTP by the largest amount. Additionally, we find that consumers without pro-environment and pro-health attitudes also reduced their WTP for plastics after exposure to the plastic warning label.