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Environmental Labelling: Issues of Enforcement and Approval of Uniform Standards

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  • Laura Meraviglia

    () (Universita' Cattolica del Sacro Cuore)

Abstract

This paper has two parts. In the first, theoretical, section it explores issues concerning the enforcement of a mandatory environmental scheme in which firms make decisions about compliance by considering both the expected fines in the case of cheating, and the costs of compliance. Two alternative scenarios are considered: mutual exclusiveness vs. coexistence of public and private standards. The second part investigates the possibility of setting up a common environmental standard across countries. Two main variables influence the advantage of any country in adopting a common standard: the nature of environmental damage (local vs. trans-frontier) and the relative efficiency of domestic firms. Analysis has revealed on the one hand how the advantage of complying with the standard may differ widely across countries, and on the other which factors must be taken into consideration when setting up a single standard.

Suggested Citation

  • Laura Meraviglia, 2010. "Environmental Labelling: Issues of Enforcement and Approval of Uniform Standards," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 118(3), pages 355-378.
  • Handle: RePEc:vep:journl:y:2010:v:118:i:3:p:355-378
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    More about this item

    Keywords

    Environmental labelling; regulatory governance; enforcement; compliance; common environmental standard;

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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