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Benefiting from a Clean Environment versus Undertaking Efforts to Protect the Environment

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  • Douadia Bougherara
  • Gilles Grolleau
  • Luc Thiébaut

Abstract

We make an important distinction between product attribute claims related to (1) the environment of the production site and (2) environmentally friendly actions. A producer using type #1 claims benefits from a clean environment, while a producer using type #2 claims undertakes efforts to protect the environment. The categorization of those claims may not be clear to consumers. Rather than focus on informational asymmetry between producers and consumers, this article deals with the way producers may support environmental claims on agrifood products using one of the two categories. Copyright 2007, Oxford University Press.

Suggested Citation

  • Douadia Bougherara & Gilles Grolleau & Luc Thiébaut, 2007. "Benefiting from a Clean Environment versus Undertaking Efforts to Protect the Environment," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 216-226.
    • Handle: RePEc:oup:revage:v:29:y:2007:i:2:p:216-226
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    File URL: http://hdl.handle.net/10.1111/j.1467-9353.2007.00339.x
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    1. Cason, Timothy N. & Gangadharan, Lata, 2002. "Environmental Labeling and Incomplete Consumer Information in Laboratory Markets," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 113-134, January.
    2. Cornes,Richard & Sandler,Todd, 1996. "The Theory of Externalities, Public Goods, and Club Goods," Cambridge Books, Cambridge University Press, number 9780521477185, September.
    3. McCluskey, Jill J., 2000. "A Game Theoretic Approach to Organic Foods: An Analysis of Asymmetric Information and Policy," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(1), pages 1-9, April.
    4. Wanki Moon & Wojciech J. Florkowski & Bernhard Brückner & Ilona Schonhof, 2002. "Willingness to Pay for Environmental Practices: Implications for Eco-Labeling," Land Economics, University of Wisconsin Press, vol. 78(1), pages 88-102.
    5. Julie A. Caswell & Eliza M. Mojduszka, 1996. "Using Informational Labeling to Influence the Market for Quality in Food Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1248-1253.
    6. Roe, Brian E. & Teisl, Mario F., 1998. "The Economics Of Labeling: An Overview Of Issues For Health And Environmental Disclosure," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 27(2), pages 1-11, October.
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    1. Gilles Grolleau & Lisette Ibanez & Naoufel Mzoughi, 2007. "Industrialists hand in hand with environmentalists: how eco-labeling schemes can help firms to raise rivals’ costs," European Journal of Law and Economics, Springer, vol. 24(3), pages 215-236, December.
    2. Wang, Xueting & Qiu, Feng & Zhang, Junbiao & Tong, Qingmeng, 2020. "Does Internet use help increase residents’ participation in programs to improve the dwelling environment? Evidence from China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304234, Agricultural and Applied Economics Association.

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