Consumer Perception of Carbon Labels on Cross-Border E-Commerce Products and its Influencing Factors: An Empirical Study in Hangzhou

1 Introduction

Carbon dioxide emissions and the resulting greenhouse effect have sparked global environmental concerns. From the Paris Agreement (2016) to the regional proposal of the European 2050 Carbon Neutrality, international efforts aimed to establish a model for global green economic development reflect a common concern for the interests of all humankind (Lan, 2020). In order to strike a balance between the excessive exploitation of natural resources and the requirements of rapid economic development, China, as a core manufacturing country, has strategically embraced the adoption of a low-carbon economy to realize ecological civilization development (Wu & Xu, 2020).

Nevertheless, China’s government has not launched compulsory certification of carbon labels on products, which leads to only a limited number of products adopting the green sign on the package. The Chinese market still lacks awareness of carbon labels. Cross-border e-commerce (CBEC) products are at the forefront of addressing the increasing global demand for green consumerism. The global leading CBEC platform, Amazon.com, issued a green label of Climate Pledge Friendly certification in 2022 which increased an average of 10% page views. In China, CBEC gradually emerged between 1999 and 2003 and, shortly afterwards, experienced a period of rapid growth (Xia, 2017). The import and export volume of CBEC in China reached 1.98 trillion RMB in 2021, with an annual growth rate of 15%, and a total number of 164 CBEC Comprehensive Pilot Areas have been established nationwide to promote international trade (Tang & Lone, 2023; Zhang & Chen, 2019).

Hangzhou, known as China’s e-commerce capital, established the first CBEC pilot area in 2015. Hangzhou consumers have now become accustomed to searching for online information before making a purchase, and they are well-informed through Chinese e-commerce websites, such as Tmall and Alibaba. In 2022, in the official evaluation of comprehensive pilot area performance, Hangzhou ranked first, which is leading the vibrant B2C business value in China (Tang & Lone, 2023). Moreover, regarded as the cradle of China’s “Two Mountains Theory,” introduced by Chinese President Xi Jinping in 2015, Hangzhou emphasized the protection of mountains and waters as more invaluable assets than gold and silver for further economic development. This theory has been widely disseminated both in Hangzhou government’s social and environmental policies and in the principles of local citizens’ way of life. The study on Hangzhou consumer’s pioneering CBEC consumption experience offers precise insights into consumer preferences for carbon-labeled products.

Carbon labeling is a direct way to showcase the efforts of controlling carbon dioxide emissions on CBEC products. However, a paradox exists: compared to other labels such as organic labels, consumers’ willingness to pay extra for carbon labels is lower (Liang et al., 2020).

This study establishes the foundation for understanding the value of carbon labels on CBEC products and to what extent these factors of the connotations of carbon labels, product innovation features, consumer attributes, and communication networks affect consumer perception of carbon-labeled products. It is valuable in guiding CBEC companies’ efforts in eco-friendly product innovation and sustainable development via adopting carbon labels.

2 Literature Review

The carbon label is an attractive tool with various designs (Figure 1), such as footprints or leaves, used in different countries aiming to prompt intelligent and sustainable purchasing decisions by customers (China Quality Certification Centre, 2017). The numbers presented on the carbon label constitute a quantitative index that covers carbon emission information throughout the Product Life Cycle (PLC). This cycle typically starts with raw material production and procurement, followed by transportation and logistics, manufacturing, sales, and disposal. Consumers can track carbon emission data through carbon labels, allowing them to gain insights into the environmental practices of product manufacturers.

Figure 1

Carbon labels. Source: China Quality Certification Centre, 2017.

The carbon label connotation represents an authorized symbol of environmental protection with a reliable, comparable, and traceable message to be displayed on product packaging. For products produced with greenhouse gas emissions, it is recommended to include product environmental declarations or certifications from entities such as the EU, UK, USA, South Korea, and others (Tong, 2019).

The product innovation features of CBEC serve as compelling examples of innovation in the era of e-enabled globalization. CBEC represents a new type of global business model, shifting from B2B (bulk trade through importing/exporting distributors) to online B2C (direct sales to global consumers via e-commerce platforms such as Amazon, eBay, and). The General Administration of Customs has noted that CBEC is experiencing robust growth, countering the global recession trend, and maintaining a growth rate of 20–25% (Zhang & Chen, 2019). CBEC products include categories such as furniture, clothing, sports, entertainment, and electronic products (Tang & Lone, 2023). According to the Diffusion of Innovation Theory (DOI), features such as relative advantages, compatibility, complexity, trialability, and observability are also expected to determine whether new technologies or innovative products can be successfully adopted (Chen, 2018).

The environmentally friendly attitudes of consumers toward carbon labels are crucial for the further development of carbon label systems. Consumers’ attributes include their judgments, beliefs, lifestyles, and value systems, which influence their preferences in purchasing decisions (Zhou, 2017). The human dimension with its socio-cultural features is increasingly understood as one of the multi-dimensional subjects for community involvement in the global prospect of low-carbon energy transition (Streimikiene et al., 2021). According to the Stimulus-Response Theory, the complexity of consumers’ behaviors can be explained by the effects of external environmental stimuli on individual decisions (Cao, 2020). With regard to the acceptance of carbon labels, scholars who support the multi-factor theory have pointed out that the customer-perceived value is derived not only from the product quality and price but also from factors related to the evaluation of utility, social responsibility, and environmental responsibility (Tao, 2018).

Communication networks and scenarios in CBEC are considered a rapidly evolving aspect of global e-commerce, providing a rich environment for the exchange of data, information, and knowledge. Online communication networks possess intangible, anonymous, instantaneous, and highly advanced characteristics (Cao, 2020). Furthermore, these e-commerce communication scenarios, characterized by informatization, interaction, and intelligence, also play a significant role in CBEC (China Quality Certification Centre, 2017). Given customers’ online information-gathering behaviors, CBEC companies should equip themselves with the capabilities for managing social relations, designing value transformation, and anticipating trends in analyzing future consumption tendencies (Carrero et al., 2021). Effectively integrating communication capabilities in managing trading websites for CBEC products can create a sophisticated marketing network.

In this study, the term “perception” refers to consumers’ cognition, trust, and acceptance of carbon labels. Consumer perception refers to the extent of consumers’ sensitivity to product information, which can be divided into three aspects: cognition, trust, and acceptance (Cao, 2020). Based on an investigation of consumers’ willingness to take part in low-carbon tourism, consumer perception involves a comprehensive evaluation of product utility based on consumers’ perceived gains and losses. However, consumers still remain at a basic level of understanding of the importance and trustworthiness of carbon labels (Xu & Lin, 2021).

Cognition refers to the degree of consumer’s sensitivity to product information on the carbon label, which includes consumers’ knowledge and understanding of the concept, meaning, system, and other related aspects of carbon emission information on the label. Trust represents the level of belief that consumers have in the characteristics of products with carbon labels. Acceptance indicates the degree of recognition and willingness to embrace the carbon label system, along with the information and connotations conveyed by the label (Cao, 2020).

3 Hypotheses

The carbon label connotation displays information about the environmental impact of manufacturers’ production, operation, and logistics management, contributing to reputation building and the development of sustainable competitive advantages (Rondoni & Grasso, 2021). When carbon labels are redesigned as visually recognizable symbols, similar to traffic light colors, for clarifying the organic production of foods, consumers’ understanding and willingness to purchase increase significantly (Liang et al., 2020). A survey conducted on the consumer perception of electrical and electronic products in China’s first-tier cities showed that 85.97% of the respondents were willing to accept environmentally friendly products (Xu & Lin, 2021). The numbers presented on a carbon label, indicating carbon emission information throughout a product’s PLC, which typically starts from raw material procurement, transportation, manufacturing, and sales, can substantially enhance trust in the product’s environmental attributes (Edenbrandt et al., 2021). Hence, the following hypothesis is proposed:

H1: Carbon label connotations are positively related to the consumer perception of carbon labels on CBEC products.

The product innovation features of CBEC have elevated international trade to a more open level, expanding the global market. CBEC has ultimately improved the efficiency of product trading and customer communication (Xia, 2017). The Chinese Government Work Report has consistently emphasized the sustainable development of CBEC for the past eight years, attributing it to the relative cost-efficiency derived from effective information dissemination, variable marketing mix, time-saving e-customer services, and data mining (Tang & Lone, 2023). Specifically, products with carbon labels are more likely to gain support from consumers when the sustainability effect of the PLC (Product Life Cycle) is appropriately appreciated (Liang et al., 2020). Low trust in the adoption of innovation may result from rare or unobservable descriptions in the ecological PLC (Edenbrandt et al., 2021). Hence, the following hypothesis is proposed:

H2: Product innovation features of CBEC are positively related to the consumer perception of carbon labels.

Analyzing consumers’ attributes is essential for understanding consumers’ behaviors and reactions when adopting carbon-labeled products. Based on PLC evaluation, the consumer perception of carbon labels depends on the extent to which they value carbon emission management (Tao, 2018). Studies on the pilot program of “THE GREEN CITY” with mobile green points in the EU, the promotion of energy renovation of residential buildings and micro-generation technologies in Lithuania and Greece, verified the value of unified citizen awareness (Streimikiene & Kyriakopoulos, 2023; Tsimnadis et al., 2023). Thanks to adequate education and sufficient knowledge of sustainable lifestyle concepts, the study found that Italian consumers generally exhibited a positive willingness to pay for milk with a low carbon footprint (Maurizio & Silvia, 2019). Once urban consumers correctly understood the meaning of carbon labels, they tended to have a higher level of awareness and preference for repurchasing (Tong, 2019). Additionally, the influence of consumers’ subjective cognition and perceived utility was tested and found to have a significant impact on the acceptance of carbon labels (Wong et al., 2020). However, other studies on consumers’ preferences for meat products revealed that certain consumers deliberately avoided carbon labels because they rarely believed that these labels accurately conveyed carbon emission information (Edenbrandt et al., 2021). Hence, the following hypothesis is proposed:

H3: Consumers’ attributes are positively related to the consumer perception of carbon labels on CBEC products.

Communication networks and scenarios provide interactive communication tools which increase customers’ awareness and acceptance. These online consumption scenarios could accelerate the success rate of new products and new technologies (Edenbrandt et al., 2021). The theory of system mechanics analyzed consumers’ behaviors in buying carbon-labeled products, which showed that the graphic value expression scenarios would affect consumer perception and thus affect the final purchasing decision (Zhao et al., 2021). Although carbon labels improve the products’ credibility in certain regulated areas (such as in the EU), according to the popularization and practical application analysis, the carbon label system was still in its initial stage in the global marketplaces, but online publicity and communication could be a beneficial channel in the long-term development (Lan, 2020; Tang & Lone, 2023). Hence, the following hypothesis is proposed:

H4: Communication networks and scenarios are positively related to the consumer perception of carbon labels on CBEC products.

The study construct model and the co-relationship hypotheses are presented in Figure 2 below:

Figure 2

Study construct model.

4 Study Methodology

The study designed to conduct two rounds of questionnaires in China (Hangzhou) Cross-border E-Commerce Comprehensive Pilot Area Town (CBEC town). It is a concentrated area for O2O (online to offline) experiences with imported and exported products, where consumers can try out products and then orders online through global online e-commerce websites such as Amazon and AliExpress. It is an ideal location for assessing consumers’ in-depth perspectives on CBEC carbon-labeled products. Then face-to-face interviews were conducted as a pilot study to explore the relevant attributes according to the literature. The interview questions covered topics such as the awareness of information about carbon labels, data on the carbon emission index, visual design of carbon labels, consumer consciousness, values related to environmental issues, consumers’ lifestyles, product production processes, sustainability of CBEC products, PLC of CBEC products, dissemination of knowledge about carbon labels, flexibility of customer communication networks, and companies’ communication capabilities. Finally, 25 questions related to four independent variables (refer to Table 1) and 7 questions related to the dependent variable (consumer perception) were determined.

Hence, questionnaires were distributed randomly, as Round 1 survey, which also consisted of questions related to respondents’ demographic information: gender, age, education level, monthly income level, and experience with purchasing CBEC products with carbon labels. Analysis of Variance (ANOVA) was adopted to test the significance of differences in sample mean. Respondents indicated their level of agreement on a 5-point Likert scale. Data from 125 valid samples were accepted for SPSS analysis (Statistical Packages for Social Science) to test the study model, referring to the Supplementary file. Regression analysis was employed to test the study’s hypotheses.

In Round 2, an introduction of 3–5 min to the 125 respondents was provided. The education information covered the value of carbon labels, green aspects of product innovation features, sustainable contributions of an eco-friendly lifestyle, and products’ online communication networks. After that, seven questions related to CLC, PIF, CA, CNS, CO, TR, and AC (using 5-point Likert scales) were launched to assess whether environmental knowledge and knowledge about carbon labels informed consumers would alter their perceived value.

1. Informed consent: The conduct of face-to-face interviews and questionnaires methods had been approved by the Hangzhou City University. All participants provided informed consent prior to participation, to ensure they were fully aware of the study s purpose, confidentiality measures and their right to withdraw at any time.

5 Results

The correlations between socio-economic characteristics and survey responses provided insights into how different demographic factors influenced the consumer perception of carbon labels. This helped in understanding which consumer groups were more likely to be influenced by carbon labels. Table 2 displayed demographic information of respondents. Demographic analysis observed that younger consumers with higher education levels could have a higher willingness to purchase CBEC products with carbon labels. Regarding different gender’s perceptions of carbon labels, there was no significant difference between males and females (The F = 0.20, Sig. = 0.887). Perceptions of carbon labels by age group showed respondents aged 21–30 and 31–40 years were more likely to accept products with low carbon emissions, indicating they were the primary advocates for environmentally friendly products. Consumers with college and undergraduate levels were associated with a higher level of cognition regarding carbon labels. In terms of income levels, the majority of respondents (51.2% with a monthly income above 5,000 RMB) had greater intention to purchase CBEC products with carbon labels.

Furthermore, this study conclusively divided the 25 items into four independent variables. The measure reliability coefficient (Cronbach’s alpha) was 0.986, which was larger than 0.7 (the acceptable threshold level) and thus met the reliability test criteria. Each item’s “Cronbach’s Alpha if item deleted” was lower than 0.986, indicating that the items were suitable and there was no need for deletion, as shown below. The value of KMO was 0.978, higher than 0.6. Bartlett’s Sphericity test results showed that the significance (ρ) value was 0.000***, indicating the interdependency of the five constructs and confirming a normal distribution. Through regression analysis, it was found that F = 387.024, R ² = 0.928, and P < 0.000 in ANOVA analysis, demonstrating that the study model was reasonably reliable for predicting and interpreting data.

According to the analysis of the Round 1 (before-education) coefficient results as shown in Table 3, it is presented that CLC and CA were significantly related to CP value (ρ < 0.05), while PIF and CNS were not. TR and AC were not significantly related to any of these factors (ρ > 0.05, respectively were 0.117 and 0.231). As a result, hypothesis 1 and hypothesis 3 were accepted, while hypothesis 2 and hypothesis 4 were rejected in the Round 1 survey.

According to the Round 2 survey (after-education) analysis, through the Paired-samples t-test, it was observed that the mean perceived value of educated consumers (3.78) was higher than that of non-educated consumers (3.64), and the Sig.(2-tail) = 0.000 < 0.05. Referring to Table 3, CLC, PIF, CA, and CNS could significantly affect consumer perception (ρ < 0.05). CNS did not result in positive CO, TR, or AC (ρ > 0.05).

As a result, there was a significant difference between non-educated consumers and educated consumers. In Round 1 (before education), it presented that CLC and CA were significantly related to CP value (ρ < 0.05), while PIF and CNS were not. Round 2 measured how those respondents updated their views about carbon labels, compared to Round 1 (as a control group). It revealed that after key information leaning, the influence of PIF changed from non-significant to significant on consumer perception.

6 Discussion

As a result, hypothesis 1 and hypothesis 3 were accepted, while hypothesis 2 and hypothesis 4 were rejected in the Round 1 survey. This study indicated that Hangzhou consumers, who habitually concern themselves with environmental issues as green advocates, are more willing to purchase carbon-labeled products. It showed that purchasing decisions are highly dependent on widely acknowledged environmental values and lifestyle education (from accepted hypotheses 1 and 3). Unless consumers believe that the information provided by carbon labels is beneficial in meeting their requirements for green consumption and social responsibility, they may disregard the green innovation efforts of CBEC and even reject communication from product marketing networks (from rejected hypotheses 3 and 4).

The key considerations of environmental beliefs are relatively strong in the social consciousness of Hangzhou. The level of cognition in Hangzhou consumer perception of CBEC products is significantly influenced only by CLC and CA. Consumers’ environmentally friendly lifestyles and values significantly affect their awareness of a product’s carbon label. It was an interesting finding that Hangzhou consumers embraced a predisposition toward products’ environmental attributes, even if they had weak knowledge or experience regarding products’ green innovation or community comments.

Moreover, consumer perception has the strongest correlation with the soundly displayed content of CBEC products’ carbon labels, especially in terms of trust and acceptance. Consumers’ rational judgments could be strengthened based on the environmental behavior information released on the carbon label, such as the PLC carbon emission index, carbon label attribution, and institutions of carbon label certification. Globally authorized certification, comparable index data, and citations from the government increase customers’ belief in the environmental contribution of carbon labels. Carbon labeling is regarded as a competitive advantage for building consumers’ insights based on these quantitative estimations.

Education about environmental knowledge and carbon labels could significantly improve consumer perception. As observed in the Round 2 survey, consumers’ trust in the carbon-labeled CBEC products was strengthened by the provision of clarifying information. They were successfully valued for their alignment with the high-end imported innovation image, as demonstrated by the PLC. In the context of environmental protection awareness, these strong subjective awareness and clear decision-making intentions to purchase will be further enhanced by CBEC product attributes that are relatively advantageous, well-defined, observable, and triable. It is highly regarded to encourage the transition of the public from passive to instinctive environmental protection through green consumption concepts.

Furthermore, the correlation between consumption scenarios and product communication networks has the weakest relationship with consumer perception (rejected hypothesis 4). CBEC companies’ efforts in enriching product marketing seem not to result in high cognition. One reason is that consumers’ searching behaviors on the CBEC website are initiative and directly lead to certain desired products, rather than carbon label information. Another reason may be that CBEC manufacturers do not substantially support a truthful management system of carbon labels with sufficient PLC green innovation information, data, and knowledge release.

This study has certain limitations that future scholars must consider to improve both internal and external validity in similar studies. First, the sample size of this study was relatively small and limited to 125 respondents in Hangzhou, China, potentially limiting the generalizability of the findings to broader populations. The sample size of 125 respondents may limit the robustness of our inferences, particularly when examining heterogeneity in perceptions. The random sampling method used in this study may not ensure adequate representation of all consumer subgroups. The reliance on self-reported survey data is susceptible to biases such as social desirability and subjective interpretation. While the study introduced an educational intervention, its short duration limits the understanding of the long-term effects of such efforts on consumer perception.

7 Recommendation

8 Conclusion

The carbon label is an emerging topic, but some questions related to the effectiveness of the carbon label system confuse business practices. This study constructed a model to study the consumer perception of carbon-labeled CBEC products and the influencing factors, which were CLC, PIF, CA, and CNS. Questionnaires were derived from the perceived value theory, the Stimulus-Response Theory, the Diffusion of Innovation Theory, and other relevant literature. The investigation was conducted in the China (Hangzhou) CBEC Pilot Area, which was regarded as the first and most representative area in China. A total of 125 valid questionnaires were collected, resulting in a 52.5% valid response rate.

In the Round 1 survey, efficient management of carbon label connotations and social environmental consciousness were highlighted. The value of carbon label connotations was related to comparability through attractive visual designs, reliability through authorized information, and traceability across the product life-cycle. Consumers’ attributes, such as their sustainable beliefs, values, and environmentally friendly lifestyles, significantly influenced their perceptions of carbon-labeled CBEC products. However, the green product attributes and marketing communication scenarios did not significantly affect customer perception. Therefore, an understandable demonstration of carbon label data and accessible information about manufacturing advancements, as well as social education about eco-friendly lifestyles, would be beneficial for CBEC.

The Round 2 survey confirmed that after key information leaning, the influence of PIF changed from non-significant to significant on consumer perception. Providing data, information, and knowledge about carbon labels throughout the product’s supply, production, marketing, and disposal life-cycle could significantly enhance consumers’ trust perception. This approach proved more effective than relying solely on the single number identified by carbon labels.

However, traditional marketing tactics aimed at enhancing the consumption experience do not lead to a higher awareness or trust level for carbon-labeled CBEC products. The study displayed that CBEC companies’ efforts in enriching product demonstration and their communication marketing networks were weak to visibly bring CBEC products. A growing respect for the value of carbon labels could significantly change the consumers’ trust and acceptance of low-carbon CBEC products.

While this study focused on consumers in Hangzhou, comparative studies across different regions in China will help validate the external applicability of the results. Future studies could employ stratified sampling methods from various regions and demographics, incorporate observational or experimental designs (such as tracking actual purchasing behaviors or using advanced tools like eye-tracking), or expand sustained programs or longitudinal studies to evaluate lasting changes. A larger sample size from the broader Chinese population would be beneficial to enhance the power of statistical tests and ensure more reliable results. This work could yield more objective insights into consumer perceptions and behaviors with higher internal and external validity, ultimately enhancing the practical applications of carbon labels in CBEC contexts.