Discussion Papers no. 332
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.
Om publikasjonen
- Tittel
-
Eco-labels, production related externalities and trade
- Ansvarlig
-
Mads Greaker
- Serie og -nummer
-
Discussion Papers no. 332
- Utgiver
-
Statistics Norway
- Emne
-
Discussion Papers
- Antall sider
-
33
- Målform
-
Engelsk
- Om Discussion Papers
-
Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
Kontakt
-
SSBs informasjonstjeneste