Competing Environmental Labels

Journal of Economics and Management Strategy - Tập 23 Số 3 - Trang 692-716 - 2014
Carolyn Fischer1, Thomas P. Lyon2
1Resources for the Future, Washington, DC, 20036
2Ross School of Business; University of Michigan; Ann Arbor MI 48109

Tóm tắt

We study markets in which consumers prefer green products but cannot determine the environmental quality of any given firm's product on their own. A nongovernmental organization (NGO) can establish a voluntary standard and label products that comply with it. Alternatively, industry can create its own standard and label. We compare the stringency of these two types of labels, and study their strategic interaction when they coexist. We find that even with error‐free labels, environmental benefits may be smaller with two labels than with the NGO label alone, and we characterize when label competition is more likely to be environmentally beneficial.

Từ khóa


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Thông tin
Thông tin xuất bản

Journal of Economics and Management Strategy

Tập 23 Số 3

692-716

Thông tin tác giả