The effect of information and beliefs on preferences for sustainably produced beef

Abstract

Beef production is a major contributor to greenhouse gas (GHG) emissions. We conducted a choice experiment to analyse consumers’ willingness to pay (WTP) for beef characterised as carbon-friendly. We included a treatment where respondents were informed about carbon-friendly production and surveyed beliefs regarding beef production’s contribution to GHG emissions. The results show that consumers have a positive WTP for carbon-friendly beef and providing information increases the premium that they are willing to pay for it. The findings also suggest that consumers who believe that beef production contributes to GHG emissions are willing to pay more for beef carrying a carbon-friendly label.