The roles of human values and generalized trust on stated preferences when food is labeled with environmental footprints: insights from Germany

Grebitus, Carola and Steiner, Bodo and Veeman, Michele (2014): The roles of human values and generalized trust on stated preferences when food is labeled with environmental footprints: insights from Germany. Forthcoming in: Food Policy

Abstract

This study explores influences of human values and trust on stated preferences for food labeled with environmental footprints. We apply survey data to assess influences of these individual-specific characteristics on German consumers’ stated choices of potatoes, through an attribute-based choice experiment in which product alternatives are described by footprint labels and prices. We find that accounting for consumers’ value systems, but not generalized trust beliefs, aids in understanding choices and identifying possible markets for footprint-labeled food products.

• Item Type: MPRA Paper
• Language: English
• Keywords: carbon footprint, ecological, Rokeach Value Survey, environmental sustainability, mixed logit
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C25 - Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions ; Probabilities; C - Mathematical and Quantitative Methods > C9 - Design of Experiments; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics

References

Ai, C. R., Norton, E. C. 2003. Interaction terms in logit and probit models, Economics Letters, 80(1) 123-129.

Ajzen, I. 1991. The Theory of Planned Behavior. Organizational Behavior and Human Decision Processes, 50, 179-211.

Alhakami, A., Slovic, P. 1994. A psychological study of the inverse relationship between perceived risk and perceived benefit. Risk Analysis, 14: 1085–1096.

Allen, M. W., Ng, S. H., 1999. The Direct and Indirect Influences of Human Values on Product Ownership, Journal of Economic Psychology 20 (1): 5–39.

Allen, M. W., Ng, S. H., 2003. Human Values, Utilitarian Benefits and Identification: The Case of Meat, European Journal of Social Psychology: 33 (1): 37–56.

Allen, M. W., Gupta R, Monnier, A., 2008. The Interactive Effect of Cultural Symbols and Human Values on Taste Evaluation, Journal of Consumer Research 35: 294-308.

Alwin, D.F., Krosnick, J.A., 1985. The Measurement of Values in Surveys: A Comparison of Ratings and Rankings. Public Opinion Quarterly 49(04), 535-552.

Beatty, S.E., L.R., Kahle, P. Homer, Misra, S., 1985. Alternative Measurement Approaches to Consumer Values: The List of Values and the Rokeach Value Survey. Psychology & Marketing, 1985(2), 181- 200.

Chapagain, A.K., Hoekstra, A.Y., 2004.Water Footprints of Nations. Volume 2: Appendices. Research Report Series ‘Value of Water’ No. 16. Delft: NESCOIHE.

Chapagain, A.K., Hoekstra, A.Y., 2007. The water footprint of coffee and tea consumption in the Netherlands. Ecological Economics 64 (1): 109–118.

Clawson, C.J., Vinson, D.E., 1978. Values and consumption patterns: A closed loop. In H.K. Hunt (Ed.), Advances in consumer research, 5, 403-407.

Ding, Y., Veeman, M. M., Adamowicz, W. L., 2012. The Impact of Generalized Trust and Trust in the Food System on Choices of a Functional GM Food. Agribusiness, 28, 54–66. doi: 10.1002/agr.20287.

Economist 2011. Following the footprints, June 2nd 2011 Edwards-Jones, G., Plassmann, K., York, E., Hounsome, B., Jones, D., Canals, M., 2009. Vulnerability of exporting nations to the development of a carbon label in the United Kingdom, Environmental Science and Policy 12: 479-490.

Financial Times, 2012. Tesco steps back on carbon footprint labeling. January 31, By Louise Lucas and Pilita Clarke.

Fishbein, M., Ajzen, I. 1975. Belief, Attitude, Intention, and Behavior: An Introduction to Theory and Research. Reading, MA: Addison-Wesley.

Georgarakos, D., & G. Pasini (2011) Trust, sociability, and stock market participation. Review of Finance, 15(4): 693-725.

Grebitus, C., Steiner, B., Veeman, M., 2012. Personal Values and Decision Making: Evidence from Environmental Footprint Labeling in Canada, Am. J. Agr. Econ. first published online October 15, 2012 doi:10.1093/ajae/aas109.

Grebitus, C., Jensen, H.H., Roosen, J., Sebranek, J.G. 2013. Fresh meat packaging: Consumer acceptance of modified atmosphere packaging including carbon monoxide. Journal of Food Protection, 76(1), 99-107.

Grunert, S.C., Juhl, H.J., 1995. Values, environmental attitudes, and buying of organic foods. Journal of Economic Psychology, 16, 39-62.

Gryna, F.M. 1998. Market Research and Marketing. In: Juran, J.M, Godfrey, A.B., Hoogstoel, R.E. and E.G. Schilling (eds): Juran’s Quality Handbook. McGraw-Hill, New York, USA, 5th edition, 18.1.

Gulev, R.E. (2012): Exploring cultural values connected to sustainability: why some people are more likely to act in a sustainable manner than others. International Journal of Sustainable Economy, 4(3), 286-299.

Henion, K., 1972. The effect of ecologically relevant information on detergent sales, Journal of Marketing Research 9(2): 10-14.

Hersch, J., Viscusi, W.K., 2006. The generational divide in support for environmental policies: European evidence. Climatic Change 77 (1–2): 121–136.

Hong, K., & I. Bohnet (2007) Status and distrust: The relevance of inequality and betrayal aversion, Journal of Economic Psychology, 28: 197–213.

Intergovernmental Panel on Climate Change, eds. (IPCC). 2007. Summary for Policymakers. In: Climate Change 2007: The Physical Science Basis. Contribution of Working Group I to the fourth Assessment Report of the IPCC. Cambridge University Press, Cambridge. http://www.ipcc.ch/pdf/ assessment-report/ar4/wg1/ar4-wg1-spm.pdf, visited 12/4/2011.

Johnson, B. & Slovic, P. (1994) ‘Improving’ risk communication and risk management: legislated solutions or legislated disasters? Risk Analysis, 14, 905–906.

Kempton, W., 1991. Lay perspectives on global climate change, Global Environmental Change 1(3): 183–208.

Klockenhoff, J., 2009. Product Carbon Footprinting und der Kohlendioxid-bewusste Konsument, Journal of Consumer Protection and Food Safety, 4: 191-201.

Leiserowitz, A.A., R.W. Kates, Parris, T.M., 2006. Sustainability values, Attitudes, and Behaviors: A Review of Multinational and Global Trends. Annual Review of Environment and Resources, 31,413–444.

Louviere J. J., Hensher, D.A, .Swait, J.D., 2000. Stated Choice Methods: Analysis and Applications. Cambridge: Cambridge University Press.

Luhrnann, N., 1979. Trust and Power. Chichester, NY: Wiley.

Manning, C. 2009. The Psychology of Sustainable Behavior. Tips for empowering people to take environmentally positive action. Minnesota Pollution Control Agency. Document Number: p-eel-01. http://webcache.googleusercontent.com/search?q=cache:http:/ /www.cogsci.umn.edu/colloquia/docs_F12/Manning_2012.pdf, accessed 2/12/2014.

Manski, C.F. (1977). The structure of random utility models. Theory and Decision, 8: 229–254.

McKnight, H., Choudhury, D., Kacmar, C., 2002. The impact of initial consumer trust on intentions to transact with a web site: a trust building model. The Journal of Strategic Information Systems 11(3): 297-323.

Ngene Manual, 2012. http://www.choice-metrics.com/documentation.html.

Potato Council, 2010. http://www.potato.org.uk/media_files/seed/garethedwards-jones.pdf, viewed October 2010.

Powers, G., 2011. Retailers move to put carbon footprint labels on products. MSN Money, www.everyday money.ca/2011/06/retailers-move-to-put-carbon-footprint-labels-on-products.html, visited 12/4/2011.

Rees, W. E. (1992) Ecological footprints and appropriated carrying capacity: what urban economics leaves out, Environment and Urbanization, 4(2): 120-130.

Reeskens, T., & M. Hooghe (2008) Cross-cultural measurement equivalence of generalized trust. Evidence from the European Social Survey (2002 and 2004). Social Indicators Research, 85(3): 515-532.

Roeser, S., 2012. Risk Communication, Public Engagement, and Climate Change: A Role for Emotions, Risk Analysis, early view DOI: 10.1111/j.1539-6924.2012.01812.x)

Rokeach, M., 1968. The Role of Values in Public Opinion Research. The Public Opinion Quarterly, 32 (4), 547-559.

Rokeach, M., 1973. The Nature of Human Values. New York: Free Press.

Rosenblum, N. 1998. Membership and Morals. Princeton, NJ: Princeton University Press.

Rost, S., Gerten, D., Bondeau, A., Lucht, W., Rohwer, J., Schaphoff, S., 2008. Agricultural green and blue water consumption and its influence on the global water system. Water Resources Research 44 (9) W09405, doi:10.1029/2007WR006331.

Sandahl, D.,Robertson, R., 1989. Social determinants of environmental concern: specification and test of the model, Environment and Behavior, 21(1): 57-81.

Schächtele, K., Hertle, H., 2007. Die CO2 Bilanz des Bürgers. Publikationen des Umweltbundesamtes.

Schultz, P.W.; Zelezny, L. 2003. Reframing environmental messages to be congruent with Americanvalues. Human Ecology Review, 10(2), 126-136.

Scarpa, R.; Ferrini, S.; Willis, K. (2005) Performance of Error Component Models for Status-Quo Effects in Choice Experiments. In: Applications of Simulation Methods in Environmental and Resource Economics; Scarpa, R., Alberini, A., (Eds.) Kluwer Acadenic Publishers: London, UK.

Steiner, B., Yang, J., 2010. How do US and Canadian consumers value credence attributes associated with beef labels after the North American BSE crisis of 2003? International Journal of Consumer Studies, 34 (4): 449-463.

Teisl, M. F., 2003. What we may have is a failure to communicate: labeling environmentally certified forest products. Forest Science 49: 668–680.

Thøgersen, J., Ölander, F., 2002. Human values and the emergence of a sustainable consumption pattern: A panel study. Journal of Economic Psychology, 23, 605–630.

Trafimow, D., Finlay, K.A. 2002. The Prediction of Attitudes from Beliefs and Evaluations: The Logic of the Double Negative. British Journal of Social Psychology, 41, 77-86.

Thurstone, L.L. (1927). A law in comparative judgement. Psychological Review, 34: 273–286.

Train, K., 2009. Discrete Choice Models with Simulation. Cambridge University Press, Cambridge, UK 2nd ed..

Trommsdorff, V. 2003. Konsumentenverhalten (Consumer behaviour). Kohlhammer, Stuttgart, Germany.

Uslaner, E, M., 2002. The Moral Foundations of Trust. Cambridge University Press. Cambridge, UK.

Uslaner, E.M., 2008. Trust as a moral value. In D. Castiglione, J.W. van Deth, & G. Wolleb (Eds.), The handbook of social capital (pp. 101–121). New York: Oxford University Press.

Vinson, D. E., Scott, J.E., Lamont, L.M., 1977. The Role of Personal Values in Marketing and Consumer Behavior. Journal of Marketing, 41(2), 44-50.

Viscusi , W.K., Huber, J., Bell, J., 2011. Promoting Recycling: Private Values, Social Norms, and Economic Incentives. American Economic Review: Papers & Proceedings, 101(3), 65-70.

Wackernagel, M., Rees, W., 1997. Perceptual and structural barriers to investing in natural capital: economics from an ecological footprint perspective. Ecological Economics 20 (1): 3–24.

Walter, S., Schmidt, M., 2008. Carbon Footprints und Carbon Label – eine echte Hilfe bei der Kaufentscheidung? UFW 16:175–181, DOI 10.1007/s00550-008-0082-3.

Wansink, B., van Ittersum, K., Painter, J.E., 2005. How Descriptive Food Names Bias Sensory Perceptions in Restaurants. Food Quality and Preference 16 (5): 393–400.

Weber, C.L., Mathews, H.S. 2008. Food-Miles and the Relative Climate Impacts of Food Choices in the United States. Environmental Science and Technology 42 (10): 3508–3513.

Williams, R.M., 1968. Values. In D.L. Sills (ed.), International Encyclopedia of the Social Sciences. New York: Macmillan.