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Eco-labelling: Policy Considerations

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  • Mattoo, Aaditya
  • Singh, Harsha V

Abstract

This paper argues that eco-labeling could lead to an adverse effect on the environment. In every society there are some consumers who are concerned about environmental problems and others who are not. Labeling may stimulate concern for the environment and increase the demand for environment-friendly products. However, it is precisely this consequence of labeling that can lead to perverse results. In certain plausible cases, the differentiation of products due to labeling may lead to increased sales of products made by both environment-friendly and environment-unfriendly methods. An empirical test is suggested to establish when labeling can be usefully introduced. Copyright 1994 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Mattoo, Aaditya & Singh, Harsha V, 1994. "Eco-labelling: Policy Considerations," Kyklos, Wiley Blackwell, vol. 47(1), pages 53-65.
  • Handle: RePEc:bla:kyklos:v:47:y:1994:i:1:p:53-65
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