Efficiency properties of binary ecolabeling

研究成果: Article査読

9 被引用数 (Scopus)

抄録

We investigate efficiency properties of binary ecolabels in a homogeneous good market with heterogeneous consumers. Faced with the minimum technology standard, firms make endogenous entry, certification, and price/quantity decisions. We consider both perfect and imperfect competition with or without sunk fixed costs. Our findings are as follows. Ecolabeling alone does not achieve the first-best outcome and, to achieve the second best, may need to set the standard less strict than the efficient level. Without sunk fixed costs, ecolabeling can achieve the first-best outcome provided that both the technology standard and the complementary pollution tax are set at efficient levels. With sunk fixed costs, however, differential excise taxes that would restore allocative efficiency induce more entry than optimal, and thus, can be even welfare decreasing relative to no tax outcome. Tightening the technology standard may ameliorate such an adverse effect of the corrective tax system by reducing excessive entry and pollution per output by the certified firms.

本文言語English
ページ(範囲)798-819
ページ数22
ジャーナルResource and Energy Economics
33
4
DOI
出版ステータスPublished - 2011 11
外部発表はい

ASJC Scopus subject areas

  • 経済学、計量経済学

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