Eco-labeling and stages of development

verfasst von

Arnab K. Basu, Nancy H. Chau, Ulrike Grote

Abstract

The paper examines the effectiveness of eco-labeling in providing a market-based solution to the underconsumption of eco-friendly products in developing and developed countries. The authors show that whether labeling is an effective device in solving the problem of asymmetric information between sellers and buyers, or whether false labeling severs the link between willingness to pay and environmental conscious production choices, depends crucially on how monitoring intensities respond endogenously to economic growth, openness to trade, and technology transfers. In particular, by accounting for endogenous policy responses to economic growth, it is shown that an inverted-U relationship exists between consumer spending on ecounfriendly products and national income. In addition, while international trade unambiguously benefits the environment in the presence of eco-labeling with perfect enforcement, trade openness may nevertheless delay the turning point of the growth and environment relationship, when the cost of enforcement falls disproportionately on developing countries, and when environmental policies are employed to reap terms-of-trade gains.

Externe Organisation(en)

College of William and Mary
Cornell University
Rheinische Friedrich-Wilhelms-Universität Bonn

Typ

Artikel

Journal

Review of development economics

Band

7

Seiten

228-247

Anzahl der Seiten

20

ISSN

1363-6669

Publikationsdatum

08.04.2003

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Geografie, Planung und Entwicklung, Entwicklung

Ziele für nachhaltige Entwicklung

SDG 8 – Anständige Arbeitsbedingungen und wirtschaftliches Wachstum, SDG 13 – Klimaschutzmaßnahmen

Elektronische Version(en)

https://doi.org/10.1111/1467-9361.00188 (Zugang: Geschlossen)