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Effects of carbon reduction labels: evidence from scanner data

Author

Listed:
  • Mika Kortelainen

    (Government Institute for Economic Research (vatt), Department of Economics - University of Manchester [Manchester])

  • Jibonayan Raychaudhuri

    (School of Economics - UEA - University of East Anglia [Norwich])

  • Béatrice Roussillon

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

We investigate the effects of carbon reduction labels using a detailed scanner data set. Using a difference-in-differences estimation strategy, we find that having a carbon label has no impact on detergent prices or demand. We also investigate possible heterogeneous effects of carbon labels using the synthetic control method. We find no evidence to indicate that the prices for the counterfactual detergents without the label would have been any different from the prices of the carbon-labeled detergents. We investigate the reasons for these results and conclude that the specific design of the carbon label is responsible for its lack of success.

Suggested Citation

  • Mika Kortelainen & Jibonayan Raychaudhuri & Béatrice Roussillon, 2016. "Effects of carbon reduction labels: evidence from scanner data," Post-Print hal-01227418, HAL.
    • Handle: RePEc:hal:journl:hal-01227418
    DOI: 10.1111/ecin.12278
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    Cited by:

    1. Jibonayan Raychaudhuri & Ada Wossink, 2023. "Ecolabels and the economic recession," PLOS ONE, Public Library of Science, vol. 18(12), pages 1-27, December.
    2. Xia, Senmao & Ling, Yantao & de Main, Leanne & Lim, Ming K. & Li, Gendao & Zhang, Peter & Cao, Mengqiu, 2022. "Creating a low carbon economy through green supply chain management: investigation of willingness-to-pay for green products from a consumer’s perspective," LSE Research Online Documents on Economics 116895, London School of Economics and Political Science, LSE Library.
    3. Valeria Forlin, 2021. "Optimal Eco‐Label Standards in an Oligopolistic Setting," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 682-701, March.
    4. Yokessa, Maïmouna & Marette, Stéphan, 2019. "A Review of Eco-labels and their Economic Impact," International Review of Environmental and Resource Economics, now publishers, vol. 13(1-2), pages 119-163, April.
    5. Jibonayan Raychaudhuri & Ada Wossink, 2018. "Ecolabels and The Economic Recession," Economics Discussion Paper Series 1807, Economics, The University of Manchester.
    6. Matsdotter, Elina & Elofsson, Katarina & Arntyr, Johan, 2014. "Got green milk? Field Experimental Trail of Consumer Demand for a Climate Label," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183076, European Association of Agricultural Economists.
    7. Bonnet, Céline & Bouamra-Mechemache, Zohra & Réquillart, Vincent & Treich, Nicolas, 2020. "Viewpoint: Regulating meat consumption to improve health, the environment and animal welfare," Food Policy, Elsevier, vol. 97(C).
    8. Dominic Lemken & Anke Zühlsdorf & Achim Spiller, 2021. "Improving Consumers’ Understanding and Use of Carbon Footprint Labels on Food: Proposal for a Climate Score Label," EuroChoices, The Agricultural Economics Society, vol. 20(2), pages 23-29, August.
    9. Cole, Matthew T. & Doremus, Jacqueline M. & Hamilton, Stephen F., 2021. "Import restrictions by eco-certification: Quantity effects on tropical timber production," Journal of Environmental Economics and Management, Elsevier, vol. 107(C).
    10. Elofsson, Katarina & Bengtsson, Niklas & Matsdotter, Elina & Arntyr, Johan, 2016. "The impact of climate information on milk demand: Evidence from a field experiment," Food Policy, Elsevier, vol. 58(C), pages 14-23.
    11. Matthew T. Cole & Jacqueline Doremus & Stephen Hamilton, 2019. "Market Segmentation by Certification: Quantity effects on tropical timber production," Working Papers 1902, California Polytechnic State University, Department of Economics.

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