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Does Eco-labeling of Services Matter? Evidence from Higher Education

Author

Listed:
  • Hickman Daniel C.

    (Department of Business, University of Idaho, 875 Perimeter Dr. MS 3161, Moscow, ID 83844, USA)

  • Meyer Andrew G.

    (Department of Economics, Marquette University, 606 N. 13th St David Straz Hall, Milwaukee, WI 53151, USA)

Abstract

Eco-labeling of services has become increasingly common, yet little empirical evidence exists concerning its effectiveness. We address this gap in the literature by analyzing a highly visible eco-label, the American College and University Presidents’ Climate Commitment (ACUPCC), in the sector of higher education. We match information about the ACUPCC to the US Department of Education IPEDS database to examine the impact of signing on student applications, admissions, and enrollment. We mainly utilize a difference-in-difference approach to identify the effects of interest but confirm results with an interrupted time series model. We find that signing the ACUPCC increases applications and admitted students by 2.5–3.5 %. However, the evidence regarding enrollment is weaker with only some specifications finding increases of around 1–2 %. Overall, there is considerable heterogeneity across sectors and selectivity of the institutions. These results show that, at the minimum, voluntary and information-based approaches (VIBAs) for services can be effective in generating visibility and influencing less-costly consumer behavior.

Suggested Citation

  • Hickman Daniel C. & Meyer Andrew G., 2016. "Does Eco-labeling of Services Matter? Evidence from Higher Education," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(4), pages 1-18, October.
    • Handle: RePEc:bpj:bejeap:v:16:y:2016:i:4:p:18:n:13
    DOI: 10.1515/bejeap-2016-0050
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    Cited by:

    1. Andrea Okanović & Jelena Ješić & Vladimir Đaković & Simonida Vukadinović & Andrea Andrejević Panić, 2021. "Increasing University Competitiveness through Assessment of Green Content in Curriculum and Eco-Labeling in Higher Education," Sustainability, MDPI, vol. 13(2), pages 1-20, January.

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