A Review of Eco-labels and their Economic Impact
Une revue sur les écolabels et leur impact économique
Maïmouna Yokessa and
Stéphan Marette (stephan.marette@agroparistech.fr)
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Maïmouna Yokessa: ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - AgroParisTech
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Abstract:
In many countries, various eco-labels have emerged for informing consumers about the environmental impact of the offered products. Using recent advances in the empirical and theoretical literature, this review questions the efficiency of eco-labeling. We combine a literature review with discussions of empirical examples. We underline the limitations of eco-labels for signaling credible information to consumers. In particular, both the complexity and the proliferation of eco-labels are likely to hamper their efficiency in guiding consumers. From a regulatory perspective, several studies show that eco-labels are useful, but they cannot be considered a panacea for improving environmental quality. Indeed, it is often socially optimal to combine eco-labels with other regulatory tools such as standards banning polluting products and tax/subsidy mechanisms depending on the environmental quality. The conclusion suggests research priorities for tackling unanswered questions
Date: 2019
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (27)
Published in International Review of Environmental and Resource Economics, 2019, 13 (1-2), pp.119-163. ⟨10.1561/101.00000107⟩
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Journal Article: A Review of Eco-labels and their Economic Impact (2019) 
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02628579
DOI: 10.1561/101.00000107
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