Competing eco-labels and product market competition

I analyze a green product market in which eco-labeling programs compete—programs certifying the environmental quality of the product to their respective standards. Specifically, I examine the strategic competition between an industry-sponsored program and a program sponsored by nongovernmental organization (NGO) in a duopoly product market where eco-labels are strategic variables for firms. In particular, I analyze the effects of such eco-label competition on environmental benefit and social welfare. I show that the eco-label competition may generate the same environmental benefit and generally increase social welfare relative to a single NGO label.


Issue Date:
2016
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/235389
Total Pages:
25
JEL Codes:
Q18; Q58; L13; L15
Series Statement:
8781




 Record created 2017-04-01, last modified 2017-08-29

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