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The Potential Role of Carbon Labeling in a Green Economy

Author

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  • Cohen, Mark A.

    (Resources for the Future)

  • Vandenbergh, Michael P.

Abstract

Over the past several years, labeling schemes that focus on a wide range of environmental and social metrics have proliferated. Although little empirical evidence has been generated with respect to carbon footprint labels, much can be learned from our experience with similar product labels. We first review the theory and evidence on the influence of product labeling on consumer and firm behavior. Next, we consider the role of governments and nongovernmental organizations, concluding that global, multistakeholder organizations have a critical part to play in setting protocols and standards. We argue that it is important to consider the entire life cycle of a product being labeled and develop an international standard for measurement and reporting. Finally, we examine the potential impact of carbon product labeling, discussing methodological and trade challenges and proposing a framework for choosing products best suited for labeling.

Suggested Citation

  • Cohen, Mark A. & Vandenbergh, Michael P., 2012. "The Potential Role of Carbon Labeling in a Green Economy," RFF Working Paper Series dp-12-09, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-12-09
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    File URL: http://www.rff.org/RFF/documents/RFF-DP-12-09.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    carbon labels; voluntary disclosure; consumer behavior; life-cycle analysis; rebound effect; leakage;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F18 - International Economics - - Trade - - - Trade and Environment
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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