NDLI: Industrialists hand in hand with environmentalists: how eco-labeling schemes can help firms to raise rivals’ costs

Content Provider	Springer Nature Link
Author	Grolleau, Gilles Ibanez, Lisette Mzoughi, Naoufel
Copyright Year	2007
Abstract	Industrialists may promote eco-labeling schemes in order to gain the support of environmentalists and ultimately gain market protection. Beyond the environmental effects of such coalitions, these schemes can provide industrialists a legitimate way to disadvantage rivals, frequently foreign rivals, by raising their costs. We consider a Stackelberg model that determines the conditions under which a domestic firm has incentive to impose an eco-label in order to raise the costs of its foreign rivals. The effects of eco-labeling on domestic social welfare are ambiguous. Policy recommendations are drawn. Notably, factors that may help policy makers to identify situations more vulnerable to undesirable outcomes from a welfare viewpoint are developed.
Starting Page	215
Ending Page	236
Page Count	22
File Format	PDF
ISSN	09291261
Journal	European Journal of Law and Economics
Volume Number	24
Issue Number	3
e-ISSN	15729990
Language	English
Publisher	Springer US
Publisher Date	2007-10-25
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Eco-labels Environmental protectionism Raising rivals’ costs Commercial Law Public Finance & Economics European Integration Law and Economics
Content Type	Text
Resource Type	Article
Subject	Business and International Management Law Economics and Econometrics

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Industrialists hand in hand with environmentalists: how eco-labeling schemes can help firms to raise rivals’ costs