Consumer Preferences for Labels Disclosing the Use of Neonicotinoid Pesticides: Evidence from Experimental Auctions

Abstract

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 firm’s disclosure of neonicotinoid use in production and the extent to which this additional information is valued. Here, a laboratory experiment assessed consumers’ preferences for environmentally friendly production practices focusing on neonicotinoid labeling. Despite broad consumer unfamiliarity with neonicotinoids, results show consumers have differentiated preferences for neonicotinoidrelated labels and information disclosure.