Carbon information, pricing, and bans. Evidence from a field experiment

Abstract

How can we encourage the adoption of low carbon footprint (CF) consumption habits? In a large-scale field experiment at a university canteen, we find that adjusting dish prices to positively correlate with their carbon footprint is the most effective policy, leading to a 26.8% reduction in CF. This approach outperforms policies such as banning high-CF dishes once a week (10% CF reduction) or merely informing consumers of dishes' CF (non-significant reductions). In a follow-up survey, when asked to choose between taking no action and these three policies, only 3.5% of respondents preferred no action, while 60% supported the price adjustment policy.

Keywords: Food carbon footprint, carbon information, CO2 pricing.

JEL Classification: D12, D78, M31, Q50