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The Economics of Eco-Labeling: Theory and Empirical Implications

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  • Mason, Charles F.

Abstract

Over the past several years, environmental economists have been increasingly attracted to the use of information as an alternative to traditional methods for regulating externalities. An example of this approach is "eco-labeling," where a third party certifies firms' products; this approach is particularly popular in practice, having been adopted in a variety of countries. With this widespread adoption of eco-labeling, a literature has developed in environmental economics. In this paper, I survey the equilibria that may occur with eco-labeling, and discuss the resultant welfare effects.

Suggested Citation

  • Mason, Charles F., 2013. "The Economics of Eco-Labeling: Theory and Empirical Implications," International Review of Environmental and Resource Economics, now publishers, vol. 6(4), pages 341-372, April.
    • Handle: RePEc:now:jirere:101.00000054
    DOI: 10.1561/101.00000054
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    Citations

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    Cited by:

    1. Mika Kortelainen & Jibonayan Raychaudhuri & Beatrice Roussillon, 2016. "Effects Of Carbon Reduction Labels: Evidence From Scanner Data," Economic Inquiry, Western Economic Association International, vol. 54(2), pages 1167-1187, April.
    2. Huse, Cristian & Lucinda, Claudio & Cardoso, Andre Ribeiro, 2020. "Consumer response to energy label policies: Evidence from the Brazilian energy label program," Energy Policy, Elsevier, vol. 138(C).
    3. Soham Baksi & Pinaki Bose & Di Xiang, 2017. "Credence Goods, Misleading Labels, and Quality Differentiation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 377-396, October.
    4. Jibonayan Raychaudhuri & Ada Wossink, 2018. "Ecolabels and The Economic Recession," Economics Discussion Paper Series 1807, Economics, The University of Manchester.
    5. Jaime DE MELO & Marcelo OLARREAGA, 2017. "Trade Related Institutions and Development," Working Papers P199, FERDI.
    6. Li,Shanjun & Zhu,Xianglei & Ma,Yiding & Zhang,Fan & Zhou,Hui, 2020. "The Role of Government in the Market for Electric Vehicles : Evidence from China," Policy Research Working Paper Series 9359, The World Bank.

    More about this item

    Keywords

    Asymmetric information; Eco-labeling; Environmental economics; Signaling; Testing;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

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