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Green Consumerism and Ecolabelling: A Strategic Behavioural Model

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  • S. Salman Hussain

Abstract

The ethos of “green” marketing is to affect tastes and perceptions so that those individuals for whom the attribute of environmental‐friendliness is significant can signal this preference by choosing the “green” alternative. This paper presents a strategic behavioural model of interactions between two agents, a firm and consumer, under conditions of incomplete information. The outcome of the model is that, unless some restrictive and (arguably) unrealistic conditions apply, some proportion of “green” marketing campaigns will be misleading; “green” marketing is not restricted to “green” products, and “green” consumers only adapt their purchasing habits some of the time. Ecolabelling schemes can be used as a means of ameliorating this inefficiency in information‐transfer. Whether state intervention to make ecolabelling mandatory for “green” products is welfare‐improving depends on the balance between the deadweight losses from the process and the gains in terms of facilitating the expression of “green” preferences.

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  • S. Salman Hussain, 2000. "Green Consumerism and Ecolabelling: A Strategic Behavioural Model," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 77-89, January.
    • Handle: RePEc:bla:jageco:v:51:y:2000:i:1:p:77-89
    DOI: 10.1111/j.1477-9552.2000.tb01210.x
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    1. Luigi Bollani & Giovanni Peira & Erica Varese & Enrico Nesi & Maria Beatrice Pairotti & Alessandro Bonadonna, 2017. "Labelling and sustainability in the green food economy: Perception among millennials with a good cultural background," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2017(2), pages 83-101.
    2. Larceneux, Fabrice & Carpenter, Marie, 2008. "Third party labeling and the consumer decision process," HEC Research Papers Series 891, HEC Paris.
    3. Hussain, Salman, 2006. "Co-regulation and voluntarism in the provision of food safety: lessons from institutional economics," Working Papers 45996, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    4. Gerrit Antonides & Michelle Welvaarts, 2020. "Effects of Default Option and Lateral Presentation on Consumer Choice of the Sustainable Option in an Online Choice Task," Sustainability, MDPI, vol. 12(13), pages 1-15, July.
    5. Nicole Darnall & Hyunjung Ji & Diego A. Vázquez-Brust, 2018. "Third-Party Certification, Sponsorship, and Consumers’ Ecolabel Use," Journal of Business Ethics, Springer, vol. 150(4), pages 953-969, July.
    6. repec:dau:papers:123456789/12755 is not listed on IDEAS
    7. Jackson Jinhong Mi & Zongsheng Huang & Kai Wang & Sang-Bing Tsai & Guodong Li & Jiangtao Wang, 2018. "The Presence of a Powerful Retailer on Dynamic Collecting Closed-Loop Supply Chain From a Sustainable Innovation Perspective," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    8. Ynte Dam & Janneke Jonge, 2015. "The Positive Side of Negative Labelling," Journal of Consumer Policy, Springer, vol. 38(1), pages 19-38, March.

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