Economic analysis of environmental characteristics allows the explanation of proliferation and content diversity of environmental claims on agro-food products. It is shown that credence properties of environmental characteristics lead to an adverse selection situation accentuated by a cognitive problem resulting from limited abilities of consumers to process information. This informational situation allows firms to endogenize the costs of environmental innovation. An external mechanism capable of defining prior to monitoring and signaling efficiently environmental quality is necessary to guarantee fair trade. Copyright 2002 by Taylor and Francis Group
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Related research
Keywords:
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)