Economics at your fingertips  

Strategic Policy and Environmental Quality: Helping the Domestic Industry to Provide Credible Information

Mari Rege ()

Environmental & Resource Economics, 2000, vol. 15, issue 3, 279-296

Abstract: This paper shows that a country can improve an industry's competitiveness by requiring domestic firms to produce at the environmental standards at which they claim to produce or otherwise impose a penalty on those firms found cheating. Competitiveness will improve because this regulation will help the domestic industry to provide credible information about the environmental quality of its production. The credible information will differentiate domestic products from other products on the world market, and in this way increase consumers' willingness to pay for domestic products. Even if the government has no preferences for environmental quality, it has incentives to regulate its cheaters in order to help the domestic industry to provide credible information and thereby improve competitiveness. Copyright Kluwer Academic Publishers 2000

Keywords: asymmetric information; competitiveness; eco-labelling; environmental quality; environmental standards; strategic environmental policy; strategic trade policy (search for similar items in EconPapers)
Date: 2000
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) (text/html)
Access to full text is restricted to subscribers.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... al/journal/10640/PS2

DOI: 10.1023/A:1008360626542

Access Statistics for this article

Environmental & Resource Economics is currently edited by Ian J. Bateman

More articles in Environmental & Resource Economics from Springer, European Association of Environmental and Resource Economists Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-03-28
Handle: RePEc:kap:enreec:v:15:y:2000:i:3:p:279-296