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Environmental Quality Provision and Eco-labelling: Some Issues

  • Laura Valentini
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    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 consumers’ and producers’ 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.

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    File URL: http://www.esocialsciences.org/Download/repecDownload.aspx?fname=Document111122005420.8032343.pdf&fcategory=Articles&AId=281&fref=repec
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    Paper provided by eSocialSciences in its series Working Papers with number id:281.

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    Date of creation: Dec 2005
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    Handle: RePEc:ess:wpaper:id:281
    Note: Institutional Papers
    Contact details of provider: Web page: http://www.esocialsciences.org

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