Journal
ECOLOGICAL ECONOMICS
Volume 68, Issue 7, Pages 2145-2149Publisher
ELSEVIER
DOI: 10.1016/j.ecolecon.2009.02.020
Keywords
Altruism; Eco-labels; Egoism; Public goods
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Success of eco-labeling schemes, broadly defined, varies among products and across countries. Based on a simple theoretical framework, we show that the nature of environmental attributes among products (i.e.. private versus public) and the consumer type (i.e., egoist versus altruist) shape the overall performance of such schemes. In addition, we demonstrate that altruistic consumers exhibiting a too high willingness to pay for the eco-labeled product can inadvertently prevent egoistic consumers from purchasing it, leading to a sub-optimal outcome in terms of environmental performance. Several policy and managerial implications are drawn. (C) 2009 Elsevier B.V. All rights reserved.
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