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Eco-Labels and International Trade in Textiles


  • Wesley Nimon
  • John C. Beghin


The authors provide a formal analysis of the welfare and trade implications of eco-labeling schemes. They present a simple model of vertical (quality) differentiation that captures stylized features of the textiles market in which trading takes place between an industrialized North (domestic) and a developing South (foreign). The paper investigates several labeling scenarios--labeling by North, labeling by 130th North and South, and harmonization of 170th labels--and draws conclusions about their impact on consumers.

Suggested Citation

  • Wesley Nimon & John C. Beghin, 1999. "Eco-Labels and International Trade in Textiles," Food and Agricultural Policy Research Institute (FAPRI) Publications 99-wp221, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  • Handle: RePEc:ias:fpaper:99-wp221

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    References listed on IDEAS

    1. Lohr, Luanne, 1998. "Welfare Effects Of Eco-Label Proliferation: Too Much Of A Good Thing?," Faculty Series 16642, University of Georgia, Department of Agricultural and Applied Economics.
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    Cited by:

    1. Rousseau, Sandra & Vranken, Liesbet, 2013. "Green market expansion by reducing information asymmetries: Evidence for labeled organic food products," Food Policy, Elsevier, vol. 40(C), pages 31-43.
    2. Rousseau, Sandra & Vranken, Liesbet, 2011. "The Impact of Information on the Willingness-to-Pay for Labeled Organic Food Products," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115986, European Association of Agricultural Economists.
    3. Larson, Bruce A., 2002. "Eco-Labels for Credence Attributes: The Case of Shade-Grown Coffee," Research Reports 25215, University of Connecticut, Food Marketing Policy Center.

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