Circular products resonate well with diverse consumers: Evidence from a choice experiment in Switzerland

Abstract

Many policy initiatives in the circular economy domain center on labels to incentivize consumption of products with circular properties. To examine how consumers react to such labels, we build on existing research on particular sustainability labels and broaden the perspective to a wider set of sustainability aspects that, as a whole, amount to circular product properties. Using a choice experiment with a large population-representative sample in Switzerland (N = 3′413), we study consumer demand for key circular product properties (durability, energy efficiency, repairability and recyclability), in comparison and combined, across different electronic products. We also explore whether consumer responses to (labeled) circular economy properties differ across personal characteristics, and how consumption preferences relate to support for policies prescribing circular labels. We find that all circular properties mitigate the negative effect of increasing price on consumption choice, and that this effect is particularly strong for enhanced durability and energy efficiency. The results are consistent across a large range of sociodemographic and attitudinal covariates, most notably environmental attitudes, suggesting that comprehensive circular labeling appeals to a surprisingly broad range of individuals. We also find that individuals who favor stricter circular labeling policies are more likely to make circular consumption choices. From a policy perspective, these findings imply that governments could become more active in enabling consumers to choose products with circular characteristics, because consumers prefer such products and citizens are supportive of policies that enable such consumption choices.

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