Beyond Consumer Willingness to Pay: Impact of Geographical Indications on Greenhouse Gas Emissions

Geographical indications (GIs) link products to the characteristics of their production areas (environment, culture, landscape), thereby capitalizing on consumer willingness to pay for these attributes. While existing literature has highlighted the economic effects of GIs, empirical research on their environmental impacts remains limited. Environmental factors underpin the economic benefits of GIs and may be unsustainable if not properly managed. To address this gap, we constructed a panel dataset by combining remote sensing data with county-level statistical data from 2000 to 2021. Using a staggered difference-in-differences method, our results show that GI certification led to an approximate 3.2% decrease in methane emis-16 sions, with each additional GI contributing 0.8% to the reduction. This finding remains robust after addressing selection bias. This effect stems mainly from a decrease in fertilizer application and an enhancement in agricultural technology, rather than a reduction in agricultural output. The methane reduction effects of GI certifications linked to tea and fruit products demonstrate heightened statistical significance.