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3 - Choose Your Own Adventure!

The Landscape of Ecolabel Design

Published online by Cambridge University Press:  27 October 2022

Daniel C. Matisoff  and
Douglas S. Noonan
Daniel C. Matisoff
Affiliation:
Georgia Institute of Technology
Douglas S. Noonan
Affiliation:
Indiana University–Purdue University, Indianapolis
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Summary

This chapter offers a theoretical framework to understand the variation of ecolabel design based on the content, governance, and context of the label.Drawing upon green clubs and signaling theories, we suggest that ecolabels vary based on the stringency of the certification program, measured by the number and criticality of required standards, and the extent to which the requirements of these certifications incentivize the provision of public goods. We characterize important dimensions of ecolabels such as their impact, the value of the signal, and the extent to which they address externalities and information asymmetries. To illustrate these concepts, we take a closer look at GreenCo, a business sustainability rating system in India, and a sample of over 50 different agricultural ecolabels. This examination shows the important variation in factors like types of requirements, stringency, and institutional processes that govern the labels. Perhaps unsurprisingly, broader stakeholder engagement is associated with more emphasis on public benefits, while more surprisingly industry sponsorship does not tend to be found among the more lax labels with less public benefit.

Keywords

ecolabel designGreenCoagricultural ecolabelsinformation asymmetriesexternalitiesstakeholdersgovernancesignaling
Type
Chapter
Information
Ecolabels, Innovation, and Green Market Transformation
Learning to LEED
 , pp. 62 - 92
Publisher: Cambridge University Press
Print publication year: 2022

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  • Choose Your Own Adventure!
  • Daniel C. Matisoff, Georgia Institute of Technology, Douglas S. Noonan, Indiana University–Purdue University, Indianapolis
  • Book: Ecolabels, Innovation, and Green Market Transformation
  • Online publication: 27 October 2022
  • Chapter DOI: https://doi.org/10.1017/9781108888769.004
Available formats
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Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

  • Choose Your Own Adventure!
  • Daniel C. Matisoff, Georgia Institute of Technology, Douglas S. Noonan, Indiana University–Purdue University, Indianapolis
  • Book: Ecolabels, Innovation, and Green Market Transformation
  • Online publication: 27 October 2022
  • Chapter DOI: https://doi.org/10.1017/9781108888769.004
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Choose Your Own Adventure!
  • Daniel C. Matisoff, Georgia Institute of Technology, Douglas S. Noonan, Indiana University–Purdue University, Indianapolis
  • Book: Ecolabels, Innovation, and Green Market Transformation
  • Online publication: 27 October 2022
  • Chapter DOI: https://doi.org/10.1017/9781108888769.004
Available formats
×