Ecosystem Services in Food Labels: the Role of Different Information Layers in Shaping Consumers Preferences

Information on the provision of ecosystem services has the potential to contribute to an integrative food labeling framework. This study examines that potential by explicitly communicating ecosystem services provided by agricultural producers. The research analyzes how different label formats- ranging from generic references to ecosystem services to specific indicators-influence consumer preferences. An on field Discrete Choice Experiment was conducted with 552 Italian consumers of extra virgin olive oil. A Latent Class Model identified consumer heterogeneity, and to address the endogeneity of environmental attitudes in class allocation, a two-stage Control Function approach was applied. Two consumer segments emerged. The first, showed a consistently higher and statistically significant willingness to pay for sustainability attributes. Their willingness to pay increased with the level of informational detail. However, a negative halo effect was observed when ecosystem services labels appeared alongside organic certification, suggesting a perception of redundancy. The second segment was more price-sensitive and resistant to additional information. From a policy perspective, the results indicate how ecosystem service labeling strategies, particularly when linked to measurable environmental outcomes, can stimulate market-based incentives.