IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v183y2021ics0921800921000112.html
   My bibliography  Save this article

Sustainable practices and product quality: Is there value in eco-label certification? The case of wine

Author

Listed:
  • Delmas, Magali A.
  • Gergaud, Olivier

Abstract

In theory, eco-labels have great potential to reduce the environmental and social impact of products via consumer choice. In practice, the diffusion of eco-labels remains limited, with consumers expressing concerns about their value. One problem is a perceived tradeoff between the eco-label sustainable attributes and the quality of the product. In this paper, we examine whether this tradeoff is also perceived by product experts. Using the case of wine, we test the impact eco-labels have on experts' ratings of product quality. We use information about the quality of French wines from three major experts' guides, with information on third-party organic and biodynamic certified eco-labels, as well as self-declared eco-labels without third-party certification. Our findings, based on 128,182 wines, suggest that the third-party certified organic and biodynamic labels lead to improved ratings (+6.2 and + 5.6 percentage points respectively) as compared to conventional wines. These findings indicate that experts have a different appreciation of the quality of eco-certified wines than some consumers. However, self-declared eco-labels that include non-certified sustainable practices, received similar ratings to conventional wines in the best-case scenario. This indicates that non-certified sustainable practices can be associated with greenwashing and endanger the perceived value of eco-labels more generally.

Suggested Citation

  • Delmas, Magali A. & Gergaud, Olivier, 2021. "Sustainable practices and product quality: Is there value in eco-label certification? The case of wine," Ecological Economics, Elsevier, vol. 183(C).
  • Handle: RePEc:eee:ecolec:v:183:y:2021:i:c:s0921800921000112
    DOI: 10.1016/j.ecolecon.2021.106953
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800921000112
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ecolecon.2021.106953?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexander Chernev, 2007. "Jack of All Trades or Master of One? Product Differentiation and Compensatory Reasoning in Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(4), pages 430-444, January.
    2. Ivan Montiel & Bryan W. Husted & Petra Christmann, 2012. "Using private management standard certification to reduce information asymmetries in corrupt environments," Strategic Management Journal, Wiley Blackwell, vol. 33(9), pages 1103-1113, September.
    3. Gilles Grolleau & Lisette Ibanez & Naoufel Mzoughi & Mario Teisl, 2016. "Helping eco-labels to fulfil their promises," Climate Policy, Taylor & Francis Journals, vol. 16(6), pages 792-802, August.
    4. Pavel Castka & Charles J. Corbett, 2016. "Governance of Eco-Labels: Expert Opinion and Media Coverage," Journal of Business Ethics, Springer, vol. 135(2), pages 309-326, May.
    5. Cardebat, Jean-Marie & Figuet, Jean-Marc & Paroissien, Emmanuel, 2014. "Expert Opinion and Bordeaux Wine Prices: An Attempt to Correct Biases in Subjective Judgments," Journal of Wine Economics, Cambridge University Press, vol. 9(3), pages 282-303, December.
    6. Kotchen, Matthew J., 2005. "Impure public goods and the comparative statics of environmentally friendly consumption," Journal of Environmental Economics and Management, Elsevier, vol. 49(2), pages 281-300, March.
    7. Daniel C. Matisoff & Douglas S. Noonan & Mallory E. Flowers, 2016. "Policy Monitor—Green Buildings: Economics and Policies," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(2), pages 329-346.
    8. Ethan Pancer & Lindsay McShane & Theodore J. Noseworthy, 2017. "Isolated Environmental Cues and Product Efficacy Penalties: The Color Green and Eco-labels," Journal of Business Ethics, Springer, vol. 143(1), pages 159-177, June.
    9. Kahn, Matthew E., 2007. "Do greens drive Hummers or hybrids? Environmental ideology as a determinant of consumer choice," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 129-145, September.
    10. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2011. "Multivariate Matching Methods That Are Monotonic Imbalance Bounding," Journal of the American Statistical Association, American Statistical Association, vol. 106(493), pages 345-361.
    11. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    12. Frank Wijen & Mireille Chiroleu-Assouline, 2019. "Controversy Over Voluntary Environmental Standards: A Socioeconomic Analysis of the Marine Stewardship Council," PSE-Ecole d'économie de Paris (Postprint) halshs-02071504, HAL.
    13. Abraben, Lane A. & Grogan, Kelly A. & Gao, Zhifeng, 2017. "Organic price premium or penalty? A comparative market analysis of organic wines from Tuscany," Food Policy, Elsevier, vol. 69(C), pages 154-165.
    14. Jabori Shanawi Abdulsahib* & Bilal Eneizan & Anas Salman Alabboodi, 2019. "Environmental Concern, Health Consciousness and Purchase Intention of Green Products: An Application of Extended Theory of Planned Behavior," The Journal of Social Sciences Research, Academic Research Publishing Group, vol. 5(4), pages 868-880, 04-2019.
    15. Nicole Darnall & Hyunjung Ji & Diego A. Vázquez-Brust, 2018. "Third-Party Certification, Sponsorship, and Consumers’ Ecolabel Use," Journal of Business Ethics, Springer, vol. 150(4), pages 953-969, July.
    16. Lisette Ibanez & Gilles Grolleau, 2008. "Can Ecolabeling Schemes Preserve the Environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(2), pages 233-249, June.
    17. Anthony Heyes & Sandeep Kapur & Peter W. Kennedy & Steve Martin & John W. Maxwell, 2020. "But What Does It Mean? Competition between Products Carrying Alternative Green Labels When Consumers Are Active Acquirers of Information," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(2), pages 243-277.
    18. Ginsburgh, Victor & Zang, Israël, 2012. "Shapley Ranking of Wines," Journal of Wine Economics, Cambridge University Press, vol. 7(2), pages 169-180, November.
    19. Schumacher, Ingmar, 2010. "Ecolabeling, consumers' preferences and taxation," Ecological Economics, Elsevier, vol. 69(11), pages 2202-2212, September.
    20. Sexton, Steven E. & Sexton, Alison L., 2014. "Conspicuous conservation: The Prius halo and willingness to pay for environmental bona fides," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 303-317.
    21. Jones, Gregory V. & Storchmann, Karl-Heinz, 2001. "Wine market prices and investment under uncertainty: an econometric model for Bordeaux Crus Classes," Agricultural Economics, Blackwell, vol. 26(2), pages 115-133, November.
    22. Fuerst, Franz & McAllister, Pat, 2011. "Eco-labeling in commercial office markets: Do LEED and Energy Star offices obtain multiple premiums?," Ecological Economics, Elsevier, vol. 70(6), pages 1220-1230, April.
    23. Delmas, Magali A. & Lessem, Neil, 2014. "Saving power to conserve your reputation? The effectiveness of private versus public information," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 353-370.
    24. Delmas, Magali A. & Gergaud, Olivier & Lim, Jinghui, 2016. "Does Organic Wine Taste Better? An Analysis of Experts' Ratings," Journal of Wine Economics, Cambridge University Press, vol. 11(3), pages 329-354, December.
    25. repec:arp:tjssrr:2019:p:1203-1215 is not listed on IDEAS
    26. Carolyn Fischer & Thomas P. Lyon, 2014. "Competing Environmental Labels," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(3), pages 692-716, September.
    27. Reuter, Jonathan, 2009. "Does Advertising Bias Product Reviews? An Analysis of Wine Ratings," Journal of Wine Economics, Cambridge University Press, vol. 4(2), pages 125-151, January.
    28. George E. Newman & Margarita Gorlin & Ravi Dhar, 2014. "When Going Green Backfires: How Firm Intentions Shape the Evaluation of Socially Beneficial Product Enhancements," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(3), pages 823-839.
    29. Cardebat, Jean-Marie & Paroissien, Emmanuel, 2015. "Standardizing Expert Wine Scores: An Application for Bordeaux en primeur ," Journal of Wine Economics, Cambridge University Press, vol. 10(3), pages 329-348, December.
    30. Carolyn Fischer & Thomas P. Lyon, 2019. "A Theory of Multitier Ecolabel Competition," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 6(3), pages 461-501.
    31. Bronnmann, Julia & Asche, Frank, 2017. "Sustainable Seafood From Aquaculture and Wild Fisheries: Insights From a Discrete Choice Experiment in Germany," Ecological Economics, Elsevier, vol. 142(C), pages 113-119.
    32. Iacus, Stefano M. & King, Gary & Porro, Giuseppe, 2012. "Causal Inference without Balance Checking: Coarsened Exact Matching," Political Analysis, Cambridge University Press, vol. 20(1), pages 1-24, January.
    33. Chen, Xuqi & Gao, Zhifeng & Swisher, Marilyn & House, Lisa & Zhao, Xin, 2018. "Eco-labeling in the Fresh Produce Market: Not All Environmentally Friendly Labels Are Equally Valued," Ecological Economics, Elsevier, vol. 154(C), pages 201-210.
    34. Loureiro, Maria L. & McCluskey, Jill J. & Mittelhammer, Ronald C., 2001. "Assessing Consumer Preferences For Organic, Eco-Labeled, And Regular Apples," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-13, December.
    35. Paul Ferraro & Toshihiro Uchida & Jon Conrad, 2005. "Price Premiums for Eco-friendly Commodities: Are ‘Green’ Markets the Best Way to Protect Endangered Ecosystems?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(3), pages 419-438, November.
    36. Blamey, R. K. & Bennett, J. W. & Louviere, J. J. & Morrison, M. D. & Rolfe, J., 2000. "A test of policy labels in environmental choice modelling studies," Ecological Economics, Elsevier, vol. 32(2), pages 269-286, February.
    37. Hamilton, Stephen F. & Zilberman, David, 2006. "Green markets, eco-certification, and equilibrium fraud," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 627-644, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bartłomiej Kabaja & Magdalena Wojnarowska & Maria Chiara Cesarani & Erica Varese, 2022. "Recognizability of Ecolabels on E-Commerce Websites: The Case for Younger Consumers in Poland," Sustainability, MDPI, vol. 14(9), pages 1-19, April.
    2. Clarissa Laura Maria Spiess Bru, 2023. "Does the Tasting Note Matter? Language Categories and Their Impact on Professional Ratings and Prices," Working Papers Dissertations 105, Paderborn University, Faculty of Business Administration and Economics.
    3. Raineau, Yann & Giraud-Héraud, Éric & Lecocq, Sébastien & Pérès, Stéphanie & Pons, Alexandre & Tempère, Sophie, 2023. "When health-related claims impact environmental demand: Results of experimental auctions with Bordeaux wine consumers," Ecological Economics, Elsevier, vol. 204(PA).
    4. Sandro Sillani & Francesco Marangon & Gianluigi Gallenti & Stefania Troiano & Federico Nassivera & Matteo Carzedda, 2022. "Designation and Certification Strategies for Fungus-Resistant Grape Wines: An Exploratory Study in Italy," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    5. Alice Falchi & Gilles Grolleau & Naoufel Mzoughi, 2022. "Why companies might under‐communicate their efforts for sustainable development and what can be done?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1938-1946, July.
    6. Morone, Piergiuseppe & Caferra, Rocco & D'Adamo, Idiano & Falcone, Pasquale Marcello & Imbert, Enrica & Morone, Andrea, 2021. "Consumer willingness to pay for bio-based products: Do certifications matter?," International Journal of Production Economics, Elsevier, vol. 240(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    2. Orset, Caroline & Monnier, Marco, 2020. "How do lobbies and NGOs try to influence dietary behaviour?," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 101(1), July.
    3. Li, Yi, 2020. "Competing eco-labels and product market competition," Resource and Energy Economics, Elsevier, vol. 60(C).
    4. Nadar, Emre & Ertürk, Mine Su, 2021. "Eco-design of eco-labels with coarse grades," Omega, Elsevier, vol. 99(C).
    5. Ralf Buckley, 2023. "Sector-Scale Proliferation of CSR Quality Label Programs via Mimicry: The Rotkäppchen Effect," Sustainability, MDPI, vol. 15(14), pages 1-11, July.
    6. Cole, Matthew T. & Doremus, Jacqueline M. & Hamilton, Stephen F., 2021. "Import restrictions by eco-certification: Quantity effects on tropical timber production," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    7. Barkemeyer, Ralf & Young, C. William & Chintakayala, Phani Kumar & Owen, Anne, 2023. "Eco-labels, conspicuous conservation and moral licensing: An indirect behavioural rebound effect," Ecological Economics, Elsevier, vol. 204(PA).
    8. Walter, Jason M. & Chang, Yang-Ming, 2020. "Environmental policies and political feasibility: Eco-labels versus emission taxes," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 194-206.
    9. Qiao, Kunyuan & Dowell, Glen, 2022. "Environmental concerns, income inequality, and purchase of environmentally-friendly products: A longitudinal study of U.S. counties (2010-2017)," Research Policy, Elsevier, vol. 51(4).
    10. Delmas, Magali A. & Grant, Laura E., 2008. "Eco-Labeling Strategies: The Eco-Premium Puzzle In The Wine Industry," Working Papers 37325, American Association of Wine Economists.
    11. Sun, Shanxia & Delgado, Michael & Khanna, Neha, 2017. "Hybrid Vehicles and Household Driving Behavior: Implications for Miles Traveled and Gasoline Consumption," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258502, Agricultural and Applied Economics Association.
    12. Zhu, Zhanguo & Zhang, Tong & Hu, Wuyang, 2023. "The accumulation and substitution effects of multi-nation certified organic and protected eco-origin food labels in China," Ecological Economics, Elsevier, vol. 203(C).
    13. Hend Ghazzai & R Lahmandi-Ayed, 2018. "Ecolabels: Is More Information Better?," Working Papers hal-01877934, HAL.
    14. Dannenberg, Astrid & Weingärtner, Eva, 2023. "The effects of observability and an information nudge on food choice," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    15. Mameno, Kota & Kubo, Takahiro & Ujiie, Kiyokazu & Shoji, Yasushi, 2023. "Flagship species and certification types affect consumer preferences for wildlife-friendly rice labels," Ecological Economics, Elsevier, vol. 204(PB).
    16. Doremus, Jacqueline, 2020. "How does eco-label competition affect environmental benefits? The case of Central Africa's forests," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    17. Li, Yuanhao & van 't Veld, Klaas, 2015. "Green, greener, greenest: Eco-label gradation and competition," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 164-176.
    18. Gilles Grolleau & Naoufel Mzoughi & Angela Sutan, 2019. "Does advertising the green benefits of products contribute to sustainable development goals? A quasi‐experimental test of the dilution effect," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 786-793, July.
    19. Brécard, Dorothée, 2014. "Consumer confusion over the profusion of eco-labels: Lessons from a double differentiation model," Resource and Energy Economics, Elsevier, vol. 37(C), pages 64-84.
    20. Keisuke Hattori & Keisaku Higashida, 2023. "Who should be regulated: Genuine producers or third parties?," Journal of Economics, Springer, vol. 138(3), pages 249-286, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:183:y:2021:i:c:s0921800921000112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.