Paper or Plastic: Impacts to Consumers from Eco-labeling

Many lawmakers and environmental groups have argued in favor of carbon labeling on goods. We analyze the impacts to consumers from carbon labeling single-use cups using two randomized experiments. We document that carbon labels increase consumer knowledge of carbon but decrease knowledge of 'wastefulness.' We observe significant changes to consumer behavior tied to carbon labels but not to labels of both carbon and waste. Our estimates suggest this is mainly driven by salience. Overall, results suggest that carbon labeling influences consumers through more than just providing carbon information, which suggests greater care may be necessary when implementing future labels.