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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 also find a discount for the "no-dye" label. We do not, however, find any evidence of a premium for environment-friendly dyes. We further investigate the pricing behavior of apparel suppliers for potential heterogenous pricing of the organic-fiber attribute and find no evidence of different premia across firms.

Suggested Citation

  • Nimon, R. Wesley & Beghin, John C., 1999. "Are Eco-Labels Valuable? Evidence from the Apparel Industry," Hebrew University of Jerusalem Archive 18417, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18417
    DOI: 10.22004/ag.econ.18417
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    References listed on IDEAS

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    1. Robert C. Feenstra & James A. Levinsohn, 1995. "Estimating Markups and Market Conduct with Multidimensional Product Attributes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 62(1), pages 19-52.
    2. Phil Graves & James C. Murdoch & Mark A. Thayer & Don Waldman, 1988. "The Robustness of Hedonic Price Estimation: Urban Air Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 220-233.
    3. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    4. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
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    Cited by:

    1. Christine Boizot-Szantai & Sébastien Lecocq & Stéphan Marette, 2005. "Common Labels and Market Mechanisms," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 05-wp405, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    2. John C. Beghin & Jean-Christophe Bureau, 2001. "Quantification of Sanitary, Phytosanitary, and Technical Barriers to Trade for Trade Policy Analysis," Center for Agricultural and Rural Development (CARD) Publications 01-wp291, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Boman, Anders & Kataria, Mitesh & Lampi, Elina & Slunge, Daniel, 2026. "Ethical trade-offs in fast fashion: Exploring social, environmental, and health dimensions in clothing consumption," Ecological Economics, Elsevier, vol. 242(C).

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