RT Journal Article
SR Electronic
T1 Voluntary Eco-Labeling and the Price Premium
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 272
OP 284
DO 10.2307/3147273
VO 78
IS 2
A1 Sedjo, Roger A.
A1 Swallow, Stephen K.
YR 2002
UL http://le.uwpress.org/content/78/2/272.abstract
AB International environmental organizations propose voluntary eco-labeling as a market incentive to promote industry to operate in an ecologically sustainable and environmentally friendly manner. A microeconomic analysis questions whether voluntary eco-labeling will cause producer profits in a competitive industry to decline and whether eco-labeling will necessarily generate different prices for labeled and unlabeled product. Using wood product as an example, results identify conditions that may exist when firms lose profits, even under a voluntary system, and where existing production constraints may lead to a single price, regardless of labeling. (JEL Q28)