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A Review of Eco-labels and their Economic Impact
[Une revue sur les écolabels et leur impact économique]

Author

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  • Maïmouna Yokessa

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

  • Stephan Marette

    (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech)

Abstract

In many countries, various eco-labels have emerged for informing consumers about the environmental impact of the offered products. Using recent advances in the empirical and theoretical literature, this review questions the efficiency of eco-labeling. We combine a literature review with discussions of empirical examples. We underline the limitations of eco-labels for signaling credible information to consumers. In particular, both the complexity and the proliferation of eco-labels are likely to hamper their efficiency in guiding consumers. From a regulatory perspective, several studies show that eco-labels are useful, but they cannot be considered a panacea for improving environmental quality. Indeed, it is often socially optimal to combine eco-labels with other regulatory tools such as standards banning polluting products and tax/subsidy mechanisms depending on the environmental quality. The conclusion suggests research priorities for tackling unanswered questions

Suggested Citation

  • Maïmouna Yokessa & Stephan Marette, 2019. "A Review of Eco-labels and their Economic Impact [Une revue sur les écolabels et leur impact économique]," Post-Print hal-02628579, HAL.
  • Handle: RePEc:hal:journl:hal-02628579
    DOI: 10.1561/101.00000107
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02628579
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    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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