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Are Eco-Labels Valuable? Evidence From The Apparel Industry

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  • Nimon, R. Wesley
  • Beghin, John C.

Abstract

Using U.S. apparel catalogue data, we estimate hedonic price functions to identify market valuation of environmental attributes of apparel goods. We identify a significant and robust premium for the organic fibers embodied in the apparel goods. We find an additional organic premium for baby items. However, we do not find evidence of a premium for environment-friendly dyes. We further investigate the pricing behavior of apparel suppliers for potential departure from competitive pricing of this environmental attribute and find no evidence different premium across firms, suggesting price-taking behavior in the environmental attribute space.

Suggested Citation

  • Nimon, R. Wesley & Beghin, John C., 1998. "Are Eco-Labels Valuable? Evidence From The Apparel Industry," 1998 Annual meeting, August 2-5, Salt Lake City, UT 21016, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea98:21016
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    References listed on IDEAS

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    1. Michaels, R. Gregory & Smith, V. Kerry, 1990. "Market segmentation and valuing amenities with hedonic models: The case of hazardous waste sites," Journal of Urban Economics, Elsevier, vol. 28(2), pages 223-242, September.
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    7. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May.
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    More about this item

    Keywords

    Agribusiness; Environmental Economics and Policy;

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment

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