Public, Private and Non-Profit Regulation for Environmental Quality

Lucie Bottega () and Jenny De Freitas
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Lucie Bottega: LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier, Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier

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Abstract: This paper studies the welfare implications of different institutions certifying environmental quality supplied by a monopoly. The monopolist can voluntarily certify the quality of the product through an eco-label provided either by an NGO or a for-proft private certifier (PC). The NGO and the PC may use advertisement to promote the label. We compare the NGO and PC regimes with the regime where the regulator imposes a minimum quality standard. The presence of a private certifier in the market decreases the scope for public intervention. The availability of green advertisement reinforces the above result.

Keywords: environmental quality; green advertisement; ngo; self-regulation; certification (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

Published in Journal of Economics and Management Strategy, 2009, 18 (1), pp.105-123. ⟨10.1111/j.1530-9134.2009.00209.x⟩

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Journal Article: Public, Private and Nonprofit Regulation for Environmental Quality (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02054487

DOI: 10.1111/j.1530-9134.2009.00209.x

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