Eco-label Adoption in an Interdependent World
The growing popularity of national efforts to promote eco-labeling raises important questions. In particular, developing countries fear that the eco-label can deliberately impose the environmental concern of (high income) importing countries on their production methods. Yet, empirical studies of the adoption of eco-labelling schemes at the cross-country level are scarce due to the lack of data availability. In this paper, the decision to introduce an eco-label is analyzed through a heteroskedastic Bayesian spatial probit, which allows the government’s decision to introduce an eco-label to be influenced by the behaviour of the neighbouring countries. The estimation is performed by extending the joint updating approach proposed by Holmes & Held (2006) to a spatial framework. Empirical evidence highlights the importance of a high stage of development, innovation experience and potential scale effects in the implementation of an eco-label scheme. In addition, results confirm the existence of a strategic interdependence in the eco-label decision.
|Date of creation:||Jan 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mads Greaker, 2006. "Eco-labels, Trade and Protectionism," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 33(1), pages 1-37, 01.
- Alain Nadai, 1999. "Conditions of Development of a Product Ecolabel," Post-Print halshs-00159961, HAL.
- Sedjo, Roger & Swallow, Stephen, 1999. "Eco-Labeling and the Price Premium," Discussion Papers dp-00-04, Resources For the Future.
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar Publishing.
- Basu, Arnab K. & Chau, Nancy H. & Grote, Ulrike, 2004.
"On export rivalry and the greening of agriculture--the role of eco-labels,"
Blackwell, vol. 31(2-3), pages 135-147, December.
- Basu, Arnab K. & Chau, Nancy H. & Grote, Ulrike, 2003. "On Export Rivalry And The Greening Of Agriculture - The Role Of Eco-Labels," Discussion Papers 18764, University of Bonn, Center for Development Research (ZEF).
- Holloway, Garth & Shankar, Bhavani & Rahman, Sanzidur, 2002.
"Bayesian spatial probit estimation: a primer and an application to HYV rice adoption,"
Blackwell, vol. 27(3), pages 383-402, November.
- Holloway, Garth & Shankar, Bhavani & Rahman, Sanzidur, 2002. "Bayesian spatial probit estimation: a primer and an application to HYV rice adoption," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
- Mattoo, Aaditya & Singh, Harsha V, 1994. "Eco-labelling: Policy Considerations," Kyklos, Wiley Blackwell, vol. 47(1), pages 53-65.
- Stephen K. Swallow & Roger A. Sedjo, 2000. "Eco-Labeling Consequences in General Equilibrium: A Graphical Assessment," Land Economics, University of Wisconsin Press, vol. 76(1), pages 28-36.
- Magnani, Elisabetta, 2000. "The Environmental Kuznets Curve, environmental protection policy and income distribution," Ecological Economics, Elsevier, vol. 32(3), pages 431-443, March.
- Geweke, J, 1993. "Bayesian Treatment of the Independent Student- t Linear Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(S), pages S19-40, Suppl. De.
- Olivier Parent & James Lesage, 2005.
"Bayesian Model Averaging for Spatial Econometric Models,"
- Olivier Parent & James P. Lesage, 2007. "Bayesian Model Averaging for Spatial Econometric Models ," University of Cincinnati, Economics Working Papers Series 2007-02, University of Cincinnati, Department of Economics.
- Kurt J. Beron & James C. Murdoch & Wim P. M. Vijverberg, 2003. "Why Cooperate? Public Goods, Economic Power, and the Montreal Protocol," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 286-297, May.
- Gilles Grolleau & Sana El Harbi, 2008. "Why some countries adopt ecolabeling schemes in their regulatory arsenal and others do not?," Economics Bulletin, AccessEcon, vol. 17(3), pages 1-11.
- repec:ebl:ecbull:v:17:y:2008:i:3:p:1-11 is not listed on IDEAS
- Christopher Bruce & Andrea Laroiya, 2007. "The Production of Eco-Labels," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 36(3), pages 275-293, March.
- Cole, Matthew A. & Elliott, Robert J.R. & Shimamoto, Kenichi, 2005. "Industrial characteristics, environmental regulations and air pollution: an analysis of the UK manufacturing sector," Journal of Environmental Economics and Management, Elsevier, vol. 50(1), pages 121-143, July.
- Daniel Melser & Peter E. Robertson, 2005. "Eco-labelling and the Trade-Environment Debate," The World Economy, Wiley Blackwell, vol. 28(1), pages 49-62, 01.
- Roger A. Sedjo & Stephen K. Swallow, 2002. "Voluntary Eco-Labeling and the Price Premium," Land Economics, University of Wisconsin Press, vol. 78(2), pages 272-284.
- Eugene Beaulieu & James Gaisford, 2002. "Labour and Environmental Standards: The 'Lemons Problem' in International Trade Policy," The World Economy, Wiley Blackwell, vol. 25(1), pages 59-78, 01.
- Mario F. Teisl & Brian Roe & Alan S. Levy, 1999. "Ecocertification: Why It May Not Be a “Field of Dreams”," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 1066-1071.
- Pinkse, Joris & Slade, Margaret E., 1998. "Contracting in space: An application of spatial statistics to discrete-choice models," Journal of Econometrics, Elsevier, vol. 85(1), pages 125-154, July.
- Göran Therborn & K.C. Ho, 2009. "Introduction," City, Taylor & Francis Journals, vol. 13(1), pages 53-62, March.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:20268. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.