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The Potential Role of Carbon Labeling in a Green Economy

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  • Cohen, Mark A.

    ()
    (Resources for the Future)

  • 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 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 influence of product labeling on consumer and firm behavior. Next, we consider the role of governments and nongovernmental organizations, concluding that global, 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

Paper provided by Resources For the Future in its series Discussion Papers with number dp-12-09.

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Date of creation: 17 Apr 2012
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Handle: RePEc:rff:dpaper:dp-12-09

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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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