Eco-labelling, Competition and Environment: Endogenization of Labelling Criteria
AbstractThis paper suggests a modelling of the labelling procedure consistent with empirical observations, that allows the endogenous calculation of labelling criteria. The authority in charge of the labelling program chooses the level of labelling criteria so as to maximise the social surplus, anticipating competition between firms in environmental qualities and prices. While accounting simply for the informational role of labels, this model allows to understand observed behavior such as firms' ignorance of a label, resistance, support or indifference of firms to the labelling program and the decision of the authority not to set up a label.
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 41 (2008)
Issue (Month): 2 (October)
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Web page: http://www.springerlink.com/link.asp?id=100263
Eco-label; Labelling criteria; Environmental quality; Price competition; Firms’ position; C72; L13; Q20;
Other versions of this item:
- Adel Ben Youssef & Rim Lahmandi-Ayed, 2008. "Eco-labelling, competition and environment: Endogenization of labelling criteria," Post-Print halshs-00937208, HAL.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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