Environmental Quality Provision and Eco-labelling: Some Issues
This paper is a literature survey of some relevant issues arising from environmental quality provision and eco-labelling schemes. First of all it is shown how the two topics are strictly related. Firms adopting a production process (or producing a good) more environmentally friendly than others (environmental quality provision aspect) may want to make it public (eco-labelling aspect). The survey addresses the question of optimal environmental quality provision (also as a policy tool) and firms compliance. With regard to eco-labelling, its impacts on market structure are analysed.From the empirical evidence it can be concluded that information plays a crucial role both for consumersâ€™ and producersâ€™ decisions. Consumers are willing to pay a higher price to be informed about the greenness of a good, and a label can really be a determinant in their choice of which brand to purchase. On the supply side, disclosing information about the environmental performance of a firm can affect investment decisions and its stock value.
References listed on IDEAS
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- Konar, Shameek & Cohen, Mark A., 1997. "Information As Regulation: The Effect of Community Right to Know Laws on Toxic Emissions," Journal of Environmental Economics and Management, Elsevier, vol. 32(1), pages 109-124, January.
- Cesare Dosi & Michele Moretto, 2001.
"Is Ecolabelling a Reliable Environmental Policy Measure?,"
Environmental & Resource Economics,
Springer;European Association of Environmental and Resource Economists, vol. 18(1), pages 113-127, January.
- Cesare Dosi & Michele Moretto, 1999. "Is Ecolabelling a Reliable Environmental Policy Measure?," Working Papers 1999.9, Fondazione Eni Enrico Mattei.
- Foulon, Jerome & Lanoie, Paul & Laplante, Benoit, 2002. "Incentives for Pollution Control: Regulation or Information?," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 169-187, July.
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- CREMER, Helmuth & THISSE, Jacques-François, "undated". "On the taxation of polluting products in a differentiated industry," CORE Discussion Papers RP 1384, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bansal, Sangeeta & Gangopadhyay, Shubhashis, 2003. "Tax/subsidy policies in the presence of environmentally aware consumers," Journal of Environmental Economics and Management, Elsevier, vol. 45(2, Supple), pages 333-355, March.
- J. L. Moraga-González & Noemi Padrón-Fumero, 1998. "The Adverse Effects of Environmental Policy in Green Markets," CIE Discussion Papers 1998-11, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
- Klaus Conrad, 2003. "Price Competition and Product Differentiation when Consumers Care for the Environment," Working Papers 2003.66, Fondazione Eni Enrico Mattei. Full references (including those not matched with items on IDEAS)
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