IDEAS home Printed from https://ideas.repec.org/p/ags/rffdps/10826.html
   My bibliography  Save this paper

Eco-Labeling and the Price Premium

Author

Listed:
  • Sedjo, Roger A.
  • Swallow, Stephen K.

Abstract

International environmental and government organizations propose eco-labeling as a market incentive to cause industry to operate in an ecologically sustainable and biodiversity-friendly manner. A microeconomic analysis questions whether eco-labeling will cause producer profits in a competitive industry to decline, even under a voluntary system, and whether eco-labeling will necessarily generate different prices for labeled and unlabeled product. Using wood product as an example, results identify conditions that may exist when firms lose profits, even under a voluntary system, and where existing production constraints may lead to a single price, regardless of labeling.

Suggested Citation

  • Sedjo, Roger A. & Swallow, Stephen K., 1999. "Eco-Labeling and the Price Premium," Discussion Papers 10826, Resources for the Future.
  • Handle: RePEc:ags:rffdps:10826
    DOI: 10.22004/ag.econ.10826
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/10826/files/dp000004.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.10826?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Holland, Daniel & Wessells, Cathy R., 1998. "Predicting Consumer Preferences for Fresh Salmon: The Influence of Safety Inspection and Production Method Attributes," Agricultural and Resource Economics Review, Cambridge University Press, vol. 27(1), pages 1-14, April.
    2. Roheim, Cathy A. & Kline, Jeffrey D. & Anderson, Joan Gray, 1996. "Seafood Safety Perceptions And Their Effects On Anticipated Consumption Under Varying Information Treatments," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(1), pages 1-10, April.
    3. Anderson, Siwan & Francois, Patrick, 1997. "Environmental Cleanliness as a Public Good: Welfare and Policy Implications of Nonconvex Preferences," Journal of Environmental Economics and Management, Elsevier, vol. 34(3), pages 256-274, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sedjo, Roger & Swallow, Stephen, 1999. "Eco-Labeling and the Price Premium," RFF Working Paper Series dp-00-04, Resources for the Future.
    2. Roger A. Sedjo & Stephen K. Swallow, 2002. "Voluntary Eco-Labeling and the Price Premium," Land Economics, University of Wisconsin Press, vol. 78(2), pages 272-284.
    3. Chen, Xianwen & Alfnes, Frode & Rickertsen, Kyrre, 2014. "Consumer Preferences, Ecolabels, and the Effects of Negative Environmental Information," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168094, Agricultural and Applied Economics Association.
    4. Giovanni Anania & Rosanna Nisticò, 2004. "Public Regulation as a Substitute for Trust in Quality Food Markets: What if the Trust Substitute cannot be Fully Trusted?," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 160(4), pages 681-701, December.
    5. Grolleau, Gilles & Caswell, Julie A., 2006. "Interaction Between Food Attributes in Markets: The Case of Environmental Labeling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-14, December.
    6. Alfnes, Frode & Steine, Gro, 2005. "None-of-These Bias in Stated Choice Experiments," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24761, European Association of Agricultural Economists.
    7. Zhou, Li & Turvey, Calum & Hu, Wuyang & Ying, Ruiyao, 2015. "Fear and Trust: How Risk Perceptions of Avian Influenza Affect the Demand for Chicken," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 202077, Agricultural and Applied Economics Association.
    8. Curtis, John A. & Lynch, Lori, 2001. "Explaining Deer Population Preferences: An Analysis Of Farmers, Hunters And The General Public," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 30(1), pages 1-12, April.
    9. Asche, Frank & Larsen, Thomas A. & Smith, Martin D. & Sogn-Grundvåg, Geir & Young, James A., 2015. "Pricing of eco-labels with retailer heterogeneity," Food Policy, Elsevier, vol. 53(C), pages 82-93.
    10. Harrison, R. Wes & Mclennon, Everald, 2004. "Analysis of Consumer Preferences for Biotech Labeling Formats," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-13, April.
    11. Nguyen, Ly & Gao, Zhifeng & Anderson, James L., 2022. "Regulating menu information: What do consumers care and not care about at casual and fine dining restaurants for seafood consumption?," Food Policy, Elsevier, vol. 110(C).
    12. Robert Dur & Ben Vollaard, 2012. "The Power of a Bad Example - A Field Experiment in Household Garbage Disposal," Tinbergen Institute Discussion Papers 12-061/1, Tinbergen Institute, revised 10 Apr 2014.
    13. Harrison, R. Wes & Gillespie, Jeffrey & Fields, Deacue, 2005. "Analysis of Cardinal and Ordinal Assumptions in Conjoint Analysis," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 238-252, October.
    14. Nguyen, Ly & Gao, Zhifeng & Anderson, James L. & House, Lisa A., 2022. "The Impacts of Covid-19 on Consumers’ Willingness to Pay for Information Transparency at Casual and Fine Dining Restaurants," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322463, Agricultural and Applied Economics Association.
    15. Angulo, Ana Maria & Gil, Jose Maria, 2004. "Consequences of BSE on Consumers' Attitudes, Perceptions and Willingness to Pay for Certified Beef in Spain," 84th Seminar, February 8-11, 2004, Zeist, The Netherlands 24999, European Association of Agricultural Economists.
    16. Ying (Jessica) Cao & David R. Just & Calum Turvey & Brian Wansink, 2015. "Existing Food Habits and Recent Choices Lead to Disregard of Food Safety Announcements," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 63(4), pages 491-511, December.
    17. Yiling Deng & Ian A. Munn & Haibo Yao, 2021. "Attributes‐based conjoint analysis of landowner preferences for standing timber insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 24(4), pages 421-444, December.
    18. Dur, R. & Vollaard, B.A., 2013. "The Power of a Bad Example – A Field Experiment in Household Garbage Disposal (Revision of CentER DP 2013-018)," Discussion Paper 2013-037, Tilburg University, Center for Economic Research.
    19. Dur, R. & Vollaard, B.A., 2013. "The Power of a Bad Example – A Field Experiment in Household Garbage Disposal (Revision of TILEC DP 2013-006)," Other publications TiSEM 09b384df-9e66-4a3f-8126-0, Tilburg University, School of Economics and Management.
    20. Stenger, Anne, 2000. "Experimental valuation of food safety: Application to sewage sludge," Food Policy, Elsevier, vol. 25(2), pages 211-218, April.

    More about this item

    Keywords

    Environmental Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:rffdps:10826. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.