Good for the environment and safer? Food safety halo effect of eco-labels

Eco-labels signal environmentally conscious processes, facilitating a market-based solution to promote sustainability for food production. However, overshadowed by environmental preference, consumers may misperceive the labels as markers of safer food. The halo effect may cause a loss of consumer welfare and inefficient resource allocation. Our study shows that many consumers perceive Marine Stewardship Council and Sustainably Sourced as indicators of safer products. The food safety perception is likely more intense in pro-environment consumers—a sign of a halo effect. The halo effect leads to a higher willingness to pay. For many, perceived food safety quality outweighs environmental attitudes in the preference for the eco-labels. Consumers may be paying for food safety quality that has been misattributed to eco-labels.