ECOLABELS: Are They Environmental-Friendly?

Lisette Ibanez

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Abstract: This article provides a general overview of the technical, economical, regulatory and environmental aspects of ecolabeling. An ecolabel is a market-based policy instrument that can be either voluntarily adopted or mandated by law. Ecolabels are applied to services and products in order to inform consumers of their environmental-friendliness and to avoid market failures. In reality, however, ecolabels do not always succeed in achieving environmental improvements. The mis-use of environmental standards, the practice of strategic manipulations that create trade-distortions, the excessive use of claims, and behavioural biases are some of the factors that can prevent an ecolabel from reaching its initial objective to reduce or even eliminate environmental externalities.

Keywords: World Trade Organization; Environmental Improvement; Marine Stewardship Council; Environmental Claim; Consumer Willingness (search for similar items in EconPapers)
Date: 2016-05-02
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Citations: View citations in EconPapers (2)

Published in Encyclopedia of Law and Economics, Springer New York, pp.1-9, 2016, ⟨10.1007/978-1-4614-7883-6_520-1⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02928465

DOI: 10.1007/978-1-4614-7883-6_520-1

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