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Global Resources and Eco‐labels: a Neutrality Result

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  • Peter E. Robertson

Abstract

I evaluate the effectiveness of eco‐labeling programs that are designed to mitigate transboundary environmental problems. A simple two‐country model is considered, where consumers in each country value a common environmental resource. It is shown that, in equilibrium, the level of damage is independent of whether one or both countries have eco‐labeling policies. Hence, the implementation of an existing eco‐labeling program by a second country may have no effect, or a very limited effect, on the stock of the environmental resource. The result highlights potential limitations of eco‐labeling policies in this international context.

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  • Peter E. Robertson, 2007. "Global Resources and Eco‐labels: a Neutrality Result," Review of International Economics, Wiley Blackwell, vol. 15(4), pages 735-743, September.
    • Handle: RePEc:bla:reviec:v:15:y:2007:i:4:p:735-743
    DOI: 10.1111/j.1467-9396.2007.00679.x
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    Cited by:

    1. Martin Richardson & Frank Stähler, 2017. "Buy Local? Governmental Incentives to “Inform” Consumers," World Scientific Book Chapters, in: Dimensions of Trade Policy, chapter 18, pages 389-412, World Scientific Publishing Co. Pte. Ltd..
    2. Sun, Junxiu & Yin, Haitao & Wang, Feng, 2014. "Net private benefits of purchasing eco-labeled air conditioners and subsidization policies in China," Energy Policy, Elsevier, vol. 73(C), pages 186-195.
    3. Li, Yuanhao & van 't Veld, Klaas, 2015. "Green, greener, greenest: Eco-label gradation and competition," Journal of Environmental Economics and Management, Elsevier, vol. 72(C), pages 164-176.
    4. Wei, Wenjie, 2014. "Welfare and Environmental Effects of Subsidies and Tariffs in North-South Trade in Renewable Energy Equipment," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165887, Australian Agricultural and Resource Economics Society.
    5. Li, Yi, 2020. "Competing eco-labels and product market competition," Resource and Energy Economics, Elsevier, vol. 60(C).

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