Multiplicity of Eco-Labels, Competition, and the Environment
Adel Ben Youssef and
Additional contact information
Abderrazak Chema: University of Paris Sud (ADIS)
Journal of Agricultural & Food Industrial Organization, 2009, vol. 7, issue 2, 1-24
This article develops a vertical differentiation model to study the competition and environmental effects of multiplicity of eco-labels within a given market. The focus is on the informational content of multiple eco-labels and whether or not they reflect the environmental qualities the labels purport to represent. Two settings are considered. In the first setting, which represents the benchmark, we assume information is complete (consumers know the true environmental qualities of the eco-labeled goods). In the second setting, information is incomplete but consumers use price as a signal for environmental qualities. Our results show that when information is complete, introduction of a second eco-label in a market improves the environmental qualities of eco-labeled goods. When information is incomplete, introduction of a second label leads to a rise in prices and a reduction in the environmental qualities of the goods. The latter setting requires specific regulation whereby information must be revealed by a benevolent social planner.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed
Downloads: (external link)
https://www.degruyter.com/view/j/jafio.2009.7.2/ja ... .1271.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.
Working Paper: Multiplicity of eco-labels, competition, and the environment (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bpj:bjafio:v:7:y:2009:i:2:n:7
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Agricultural & Food Industrial Organization is currently edited by Azzeddine Azzam
More articles in Journal of Agricultural & Food Industrial Organization from De Gruyter
Bibliographic data for series maintained by Peter Golla ().