Title

Are Eco-Labels Valuable? Evidence From the Apparel Industry

Campus Units

Center for Agricultural and Rural Development, Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

1999

Journal or Book Title

American Journal of Agricultural Economics

Volume

81

Issue

4

First Page or Article ID Number

801

Last Page

811

DOI

10.2307/1244325

Abstract

Using apparel catalog data from the United States, we estimate hedonic price functions to identify market valuation of environmental attributes of apparel goods. We identify a significant and robust premium for the organic fibers embodied in the apparel goods. We also find a discount for the “no-dye” label. We do not, however, find any evidence of a premium for environment-friendly dyes. We further investigate the pricing behavior of apparel suppliers for potential heterogeneous pricing of the organic-fiber attribute and find no evidence of different premia across firms.

JEL Classification

D12, L67, Q20

Comments

his working paper was published as Nimon, Welsey and John Beghin, "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics 81 (1999): 801–811, doi:10.2307/1244325.