Competing eco-labels and product market competition

Yi Li

No 235389, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: I analyze a green product market in which eco-labeling programs compete—programs certifying the environmental quality of the product to their respective standards. Specifically, I examine the strategic competition between an industry-sponsored program and a program sponsored by nongovernmental organization (NGO) in a duopoly product market where eco-labels are strategic variables for firms. In particular, I analyze the effects of such eco-label competition on environmental benefit and social welfare. I show that the eco-label competition may generate the same environmental benefit and generally increase social welfare relative to a single NGO label.

Keywords: Agricultural and Food Policy; Environmental Economics and Policy; Industrial Organization; Public Economics (search for similar items in EconPapers)
Pages: 25
Date: 2016
New Economics Papers: this item is included in nep-com, nep-env and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235389

DOI: 10.22004/ag.econ.235389

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