EconPapers    
Economics at your fingertips  
 

Green, greener, greenest: Eco-label gradation and competition

Yuanhao Li and Klaas van 't Veld ()

Journal of Environmental Economics and Management, 2015, vol. 72, issue C, 164-176

Abstract: This paper analyzes two common features of markets in which eco-label programs certify that products are “green”: gradation—single programs offering multiple certification standards (e.g., platinum, gold, silver)—and competition—multiple programs vying to certify to their respective standards. We find that, depending on whether programs are sponsored by industry, environmental groups, or a government, they have strikingly different incentives to grade or compete. Industry sponsors are indifferent about both; environmentalist sponsors optimally grade or compete with other environmentalist sponsors only if consumer preferences for green consumption are skewed in a specific way; and government sponsors׳ decisions depend on the relative importance of private vs. public benefits generated by the green market. We find also that it is no accident that green markets frequently have an environmentalist program competing with an industry one. For each of the cases examined, our analysis is consistent with casual empirical evidence.

Keywords: Eco-labels; Green markets (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0095069615000455
Full text for ScienceDirect subscribers only

Related works:
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:eee:jeeman:v:72:y:2015:i:c:p:164-176

DOI: 10.1016/j.jeem.2015.05.003

Access Statistics for this article

Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

More articles in Journal of Environmental Economics and Management from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-03-28
Handle: RePEc:eee:jeeman:v:72:y:2015:i:c:p:164-176