APEC Seminar: Lucy Page-Got Beef with Beef? Evidence from a Large-Scale Carbon Labeling Experiment

Food systems account for approximately one-third of global greenhouse gas emissions, and carbon-footprint labeling is an increasingly common tool to shift consumers towards lower-carbon diets. In a randomized field experiment with over 200,000 customers at a major US food-services company, we find that carbon labels increase customer retention by 1.1% and company profits by 0.9%, despite reducing customers’ carbon footprints by only 0.6%. These profit effects suggest that carbon labeling may remain a common sustainability tool, despite its small environmental benefits. Moreover, label targeting is crucial: labels may increase footprints among those who do not agree with their purpose.