Eco-labelling by a for-profit certifier: Countervailing power and its consequences

Ibrahima Barry, Olivier Bonroy and Paolo Garella

Canadian Journal of Economics, 2017, vol. 50, issue 4, 1037-1062

Abstract: For-profit certifier's eco-labelling is common in industries where firms have some countervailing power on sharing gains from labelling. We show that the certification standard for an environmental quality is lowered when firms have strong power. A certifier with too low bargaining power will prefer to sell to the best offer rather than bargain. This switch in the selling mechanism also thwarts his incentives in setting the standard. This is consequential for evaluating policies. The dimensions and even signs of welfare changes induced by taxes and subsidies depend upon the mechanism used, and ultimately upon firms countervailing power.

JEL-codes: L13 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/caje.12286 (text/html)
access restricted to subscribers

Related works:
Journal Article: Eco‐labelling by a for‐profit certifier: Countervailing power and its consequences (2017)
Working Paper: Eco-labeling by a for-profit certifier: countervailing power and its consequences (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cje:issued:v:50:y:2017:i:4:p:1037-1062

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().