Are Eco-Labels Valuable? Evidence from the Apparel Industry

Wesley Nimon and John Beghin ()

Staff General Research Papers from Iowa State University, Department of Economics

Abstract: Using U.S. apparel catalogue data, we estimate hedonic price functions to identify market valuation of environmental attributes of apparel goods. We identify a significant and robust premium for the organic fibers embodied in the apparel goods. We also find a discount for the "no-dye" label. We do not, however, find any evidence of a premium for environment-friendly dyes. We further investigate the pricing behavior of apparel suppliers for potential heterogenous pricing of the organic-fiber attribute and find no evidence of different premia across firms.

Keywords: labeling; ecolabel; eco-label; organic cotton; textiles; apparel; dyes (search for similar items in EconPapers)
JEL-codes: L6 L8 Q2 (search for similar items in EconPapers)
Date: 1999-03-01
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Related works:
Working Paper: ARE ECO-LABELS VALUABLE? EVIDENCE FROM THE APPAREL INDUSTRY (1998)
Working Paper: Are Eco-Labels Valuable? Evidence from the Apparel Industry (2007)
Working Paper: Are Eco-Labels Valuable? Evidence from the Apparel Industry (1999)
Working Paper: Are Eco-Labels Valuable? Evidence from the Apparel Industry (1998)
Working Paper: Are Eco-Labels Valuable? Evidence from the Apparel Industry (1998)
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Persistent link: http://EconPapers.repec.org/RePEc:isu:genres:4048

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