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Eco-labelling: Policy Considerations

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Author Info
Mattoo, Aaditya
Singh, Harsha V

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Abstract

This paper argues that eco-labeling could lead to an adverse effect on the environment. In every society there are some consumers who are concerned about environmental problems and others who are not. Labeling may stimulate concern for the environment and increase the demand for environment-friendly products. However, it is precisely this consequence of labeling that can lead to perverse results. In certain plausible cases, the differentiation of products due to labeling may lead to increased sales of products made by both environment-friendly and environment-unfriendly methods. An empirical test is suggested to establish when labeling can be usefully introduced. Copyright 1994 by WWZ and Helbing & Lichtenhahn Verlag AG

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Publisher Info
Article provided by Blackwell Publishing in its journal Kyklos.

Volume (Year): 47 (1994)
Issue (Month): 1 ()
Pages: 53-65
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Handle: RePEc:bla:kyklos:v:47:y:1994:i:1:p:53-65

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  1. van Ravenswaay, Eileen O., 1996. "Emerging Demands On Our Food And Agricultural System: Developments In Environmental Labeling," Staff Papers 11742, Michigan State University, Department of Agricultural, Food, and Resource Economics. [Downloadable!]
  2. Wesley Nimon & John C. Beghin, 1999. "Eco-Labels and International Trade in Textiles," Center for Agricultural and Rural Development (CARD) Publications 99-wp221, Center for Agricultural and Rural Development (CARD) at Iowa State University. [Downloadable!]
    Other versions:
  3. Sedjo, Roger & Swallow, Stephen, 1999. "Eco-Labeling and the Price Premium," Discussion Papers dp-00-04, Resources For the Future. [Downloadable!]
  4. Alain Nadai, 2001. "Consumer' sovereignty and policy issues in the development of product ecolabels," Post-Print halshs-00159973_v1, HAL. [Downloadable!]
  5. Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002. "Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan," Working Papers 0203, Department of Economics, Vanderbilt University. [Downloadable!]
    Other versions:
  6. Varangis, Panayotis N. & Crossley, Rachel & Braga, Carlos A. Primo, 1995. "Is there a commercial case for tropical timber certification?," Policy Research Working Paper Series 1479, The World Bank. [Downloadable!]
  7. Athearn, Kevin R., 2003. "Can Eco-Labeling Do More Harm Than Good? A Comparative Statics Analysis," 2003 Annual Meeting, February 1-5, 2003, Mobile, Alabama 35105, Southern Agricultural Economics Association. [Downloadable!]
  8. Cesare Dosi & Michele Moretto, 2001. "Is Ecolabelling a Reliable Environmental Policy Measure?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 113-127, January. [Downloadable!] (restricted)
  9. Auriol, Emmanuelle & Schilizzi, Steven, 2003. "Quality Signaling through Certification. Theory and an Application to Agricultural Seed Market," IDEI Working Papers 165, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
  10. Douadia Bougherara & Gilles Grolleau & Luc Thiébaut, 2005. "Can Labelling Policies Do More Harm Than Good? An Analysis Applied to Environmental Labelling Schemes," European Journal of Law and Economics, Springer, vol. 19(1), pages 5-16, January. [Downloadable!] (restricted)
  11. Rick Harbaugh & John W. Maxwell & Beatrice Roussillon, 2006. "The Groucho Effect of Uncertain Standards," Working Papers 2006-09, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy. [Downloadable!]
  12. Audrae ERICKSON & Carol S. KRAMER-LEBLANC, 1997. "Ecolabels: The Link Between Environmental Preferences And Green Practices?," Department of Resource Economics Regional Research Project 9615, University of Massachusetts. [Downloadable!]
  13. Michael Kuhn, 1999. "Green Lemons - Environmental Labels and Entry into an Environmentally Differentiated Market under Asymmetric Information," Thuenen-Series of Applied Economic Theory 20, University of Rostock, Institute of Economics, Germany. [Downloadable!]
  14. M. K. Haener & Martin K. Luckert, 1998. "Forest Certification: Economic Issues and Welfare Implications," Canadian Public Policy, University of Toronto Press, vol. 24(s2), pages 83-94, May. [Downloadable!] (restricted)
  15. Gregory Amacher & Erkki Koskela & Markku Ollikainen, 2003. "Environmental Quality Competition and Eco-labeling," Discussion Papers 848, The Research Institute of the Finnish Economy. [Downloadable!]
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