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The potential role of carbon labeling in a green economy

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  • Cohen, Mark A.
  • Vandenbergh, Michael P.

Abstract

Over the past several years, labeling schemes that focus on a wide range of environmental and social metrics have proliferated. Although little empirical evidence has been generated yet with respect to carbon footprint labels, much can be learned from our experience with similar product labels. We first review the theory and evidence on the role of product labeling in affecting consumer and firm behavior. Next, we consider the role of governments and nongovernmental organizations, concluding that international, multistakeholder organizations have a critical part to play in setting protocols and standards. We argue that it is important to consider the entire life cycle of a product being labeled and develop an international standard for measurement and reporting. Finally, we examine the potential impact of carbon product labeling, discussing methodological and trade challenges and proposing a framework for choosing products best suited for labeling.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Economics.

Volume (Year): 34 (2012)
Issue (Month): S1 ()
Pages: S53-S63

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Handle: RePEc:eee:eneeco:v:34:y:2012:i:s1:p:s53-s63

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Web page: http://www.elsevier.com/locate/eneco

Related research

Keywords: Carbon labels; Voluntary disclosure; Consumer behavior; Life-cycle analysis; Rebound effect; Leakage;

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Cited by:
  1. Matsdotter, Elina & Elofsson, Katarina & Arntyr, Johan, 2014. "Got green milk? A field experimental trial of consumer demand for a climate label," Working Paper Series 2014:2, Department Economics, Swedish University of Agricultural Sciences.
  2. Shewmake, Sharon & Okrent, Abigail M. & Thabrew, Lanka & Vandenbergh, Michael, 2012. "Carbon Labeling for Consumer Food Goods," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124369, Agricultural and Applied Economics Association.

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