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Eco-labelling scheme, environmental protection, and protectionism

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  • Huilan Tian

Abstract

In this paper a model of international duopoly is developed involving competition in both prices and levels of environmental friendliness, and the implications of government policies are studied. It is shown that, contrary to the conventional wisdom, a regulatory increase in the minimum required level of environmental friendliness of imported goods may harm the home firm and may result in a rise in the volume of imported goods. Whether consumers lose or gain from such a regulatory increase depends on consumption spillover effects. We also show that, under certain conditions, the duopoly's equilibrium choice of levels of environmental friendliness is socially optimal.

Suggested Citation

  • Huilan Tian, 2003. "Eco-labelling scheme, environmental protection, and protectionism," Canadian Journal of Economics, Canadian Economics Association, vol. 36(3), pages 608-633, August.
  • Handle: RePEc:cje:issued:v:36:y:2003:i:3:p:608-633
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    Citations

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    Cited by:

    1. Zhang, Linghong & Wang, Jingguo & You, Jianxin, 2015. "Consumer environmental awareness and channel coordination with two substitutable products," European Journal of Operational Research, Elsevier, vol. 241(1), pages 63-73.
    2. Stéphan Marette & John Beghin, 2017. "Are Standards Always Protectionist?," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 11, pages 179-192 World Scientific Publishing Co. Pte. Ltd..
    3. Swinnen, Johan F.M. & Vandemoortele, Thijs, 2009. "Trade, Development, and the Political Economy of Public Standards," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58139, European Association of Agricultural Economists.
    4. Marette Stéphan, 2016. "Non-Tariff Measures When Alternative Regulatory Tools Can Be Chosen," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 1-17, May.
    5. Li, Yuanhao & van 't Veld, Klaas, 2015. "Green, greener, greenest: Eco-label gradation and competition," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 164-176.
    6. Kareem, Fatima Olanike & Martinez-Zarzoso, Inmaculada & Brümmer, Bernhard, 2016. "Protecting Health or Protecting Imports? Evidence from EU Non-Tariff Barriers," Discussion Papers 241267, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. Lisa Planer-Friedrich & Marco Sahm, 2017. "Strategic Corporate Social Responsibility," CESifo Working Paper Series 6506, CESifo Group Munich.
    8. repec:eee:reveco:v:53:y:2018:i:c:p:185-202 is not listed on IDEAS
    9. Planer-Friedrich, Lisa & Sahm, Marco, 2017. "Strategic corporate social responsibility," BERG Working Paper Series 124, Bamberg University, Bamberg Economic Research Group.

    More about this item

    JEL classification:

    • F00 - International Economics - - General - - - General

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