Arbeitspapier
Eco-labels, Production Related Externalities and Trade
We analyze the trade and welfare effects of eco-labels in a domestic market with one domestic firm and one foreign firm. Pollution is production related, and the government can choose between including the product category in an eco-label scheme and setting an environmental standard. The environmental standard will only apply to the domestic firm, while both firms can adopt the eco-label. Given that the environmental damage is not too large, we find that it is optimal for the government to introduce an eco-label scheme. An eco-label scheme is optimal even though the domestic firm may loose profit and the foreign firm may gain. Hence, the eco-label scheme is not introduced for protectionist purposes. Further, if the government for some reason were prevented from using eco-labels, global, domestic and foreign welfare would be hampered.
- Language
-
Englisch
- Bibliographic citation
-
Series: Discussion Papers ; No. 332
- Classification
-
Wirtschaft
- Subject
-
Eco-labels
strategie environmental
policy
trade
- Event
-
Geistige Schöpfung
- (who)
-
Greaker, Mads
- Event
-
Veröffentlichung
- (who)
-
Statistics Norway, Research Department
- (where)
-
Oslo
- (when)
-
2002
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Greaker, Mads
- Statistics Norway, Research Department
Time of origin
- 2002
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