Industrialists hand in hand with environmentalists: how eco-labeling schemes can help firms to raise rivals’ costs
Industrialists may promote eco-labeling schemes in order to gain the support of environmentalists and ultimately gain market protection. Beyond the environmental effects of such coalitions, these schemes can provide industrialists a legitimate way to disadvantage rivals, frequently foreign rivals, by raising their costs. We consider a Stackelberg model that determines the conditions under which a domestic firm has incentive to impose an eco-label in order to raise the costs of its foreign rivals. The effects of eco-labeling on domestic social welfare are ambiguous. Policy recommendations are drawn. Notably, factors that may help policy makers to identify situations more vulnerable to undesirable outcomes from a welfare viewpoint are developed.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. 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.
Volume (Year): 24 (2007)
Issue (Month): 3 (December)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/journal/10657|
References listed on IDEAS
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.:
- Sturm, Daniel & Ulph, Alistair, 2002. "Environment and trade: the implications of imperfect information and political economy," World Trade Review, Cambridge University Press, vol. 1(03), pages 235-256, November.
- Amacher, Gregory S. & Koskela, Erkki & Ollikainen, Markku, 2004. "Environmental quality competition and eco-labeling," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 284-306, March.
- Hounaida Ben Youssef & Gilles Grolleau & Khaïreddine Jebsi, 2005. "L'utilisation stratégique des instances de normalisation environnementale," Revue internationale de droit économique, De Boeck Université, vol. 0(4), pages 367-388.
- Richard R. Nelson, 1957. "Increased Rents from Increased Costs: A Paradox of Value Theory," Journal of Political Economy, University of Chicago Press, vol. 65, pages 387-387.
- Abagail McWilliams, 2002. "Raising Rivals' Costs Through Political Strategy: An Extension of Resource-based Theory," Journal of Management Studies, Wiley Blackwell, vol. 39(5), pages 707-724, 07.
- Fischer, Ronald & Serra, Pablo, 2000.
"Standards and protection,"
Journal of International Economics,
Elsevier, vol. 52(2), pages 377-400, December.
- Ronald Fischer & Pablo Serra, 1998. "Standards and Protection," Documentos de Trabajo 45, Centro de Economía Aplicada, Universidad de Chile.
- Gilles Grolleau & Tarik Lakhal & Naoufel Mzoughi, 2004. "Does Ethical Activism Lead to Firm Relocation?," Kyklos, Wiley Blackwell, vol. 57(3), pages 387-402, 08.
- Korber, Achim, 1998. "Why everybody loves Flipper: the political-economy of the U.S. dolphin-safe laws," European Journal of Political Economy, Elsevier, vol. 14(3), pages 475-509, August.
- Craig Depken & Jon Ford, 1999. "NAFTA as a Means of Raising Rivals' Costs," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(2), pages 103-113, September.
- McCluskey, Jill J., 2000. "A Game Theoretic Approach To Organic Foods: An Analysis Of Asymmetric Information And Policy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 29(1), April.
- McCluskey, Jill J., 1999. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123706, Australian Agricultural and Resource Economics Society.
- Granitz, Elizabeth & Klein, Benjamin, 1996. "Monopolization by "Raising Rivals' Costs": The Standard Oil Case," Journal of Law and Economics, University of Chicago Press, vol. 39(1), pages 1-47, April.
- Bruce Yandle, 1999. "Public Choice at the Intersection of Environmental Law and Economics," European Journal of Law and Economics, Springer, vol. 8(1), pages 5-27, July.
- Douadia Bougherara & Gilles Grolleau & Luc Thiébaut, 2007. "Benefiting from a Clean Environment versus Undertaking Efforts to Protect the Environment," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 216-226.
- Teisl, Mario F. & Roe, Brian, 1998. "The Economics of Labeling: An Overview of Issues for Health and Environmental Disclosure," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(02), pages 140-150, October.
- Roe, Brian E. & Teisl, Mario F., 1998. "The Economics Of Labeling: An Overview Of Issues For Health And Environmental Disclosure," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), October.
- John M. Crespi & St)phan Marette, 2001. "How Should Food Safety Certification be Financed?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 852-861.
- Hilke, John C & Nelson, Philip B, 1984. "Noisy Advertising and the Predation Rule in Antitrust Analysis," American Economic Review, American Economic Association, vol. 74(2), pages 367-371, May.
- McCluskey, Jill J., 2000. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(01), pages 1-9, April.
- Mads Greaker, 2006. "Eco-labels, Trade and Protectionism," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(1), pages 1-37, 01.
- Stanley M. Besen & Joseph Farrell, 1994. "Choosing How to Compete: Strategies and Tactics in Standardization," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 117-131, Spring. Full references (including those not matched with items on IDEAS)