The Economics of Eco-Labeling: Theory and Empirical Implications

Charles Mason

International Review of Environmental and Resource Economics, 2013, vol. 6, issue 4, 341-372

Abstract: Over the past several years, environmental economists have been increasingly attracted to the use of information as an alternative to traditional methods for regulating externalities. An example of this approach is "eco-labeling," where a third party certifies firms' products; this approach is particularly popular in practice, having been adopted in a variety of countries. With this widespread adoption of eco-labeling, a literature has developed in environmental economics. In this paper, I survey the equilibria that may occur with eco-labeling, and discuss the resultant welfare effects.

Keywords: Asymmetric information; Eco-labeling; Environmental economics; Signaling; Testing (search for similar items in EconPapers)
JEL-codes: D8 L15 Q5 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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