G2TT
来源类型FEEM working papers "Note di lavoro" series
规范类型论文
Product Ecolabelling, Competition and the Environment
Benoit Morel
发表日期2000
出处Climate Change and Sustainable Development
出版年2000
语种英语
摘要The paper explores the impact of a third-party product ecolabel (i.e. green label) on competition and the environment, and the firms' strategies during the negotiation of the minimum environmental requirements underlying a product's eligibility for the ecolabel. The introduction includes some empirical observation about the development of the European ecolabel. The second part presents the model. We assume Cournot competition in a homogenous industry made up of multi-product firms each selling the whole range of product-variants, from green to brown. Green consumers "trust" the ecolabel. We derive demand, supply, prices and profits at the equilibrium before and after ecolabel. We first assume that firms do not innovate on their products. We then introduce environmental innovation into the model. The third part analyses the impact of the ecolabel on competition (firms' profits) and the environment (green innovation and market shares). The conclusion contrasts the results with the ones obtained in the case of a heterogeneous industry - i.e., an industry made up of mono-product firms each selling a product having an environmental profile different than that of the other firms' products- and draws policy considerations. The paper expands the literature on product ecolabelling by considering imperfect competition, giving thus the possibility for the firms to undertake green innovations affecting non marginal costs, and by taking into account the type of industry concerned by the ecolabel. We find that firms in a homogenous industry are better off with an ecolabel than without and might even be willing to adopt environmentally effective criteria if the green demand is important and innovation costs are low. This contrasts with results obtained in a previous paper for a heterogeneous industry, in which part of the firms will always lose from the implementation of an environmentally effective ecolabel and oppose its development. Cross-industry comparison suggests that regulators should start developing ecolabelling programs with homogenous industry in which innovation costs are likely to be negligible as compared to the costs of production.
特色分类Q28,D43
关键词Quality,ecolabel,voluntary environmental regulation
URLhttps://www.feem.it/en/publications/feem-working-papers-note-di-lavoro-series/product-ecolabelling-competition-and-the-environment/
来源智库Fondazione Eni Enrico Mattei (Italy)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/116575
推荐引用方式
GB/T 7714
Benoit Morel. Product Ecolabelling, Competition and the Environment. 2000.
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