Are Eco-Labels Valuable? Evidence From the Apparel Industry
Center for Agricultural and Rural Development, Economics
Journal or Book Title
American Journal of Agricultural Economics
First Page or Article ID Number
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.
D12, L67, Q20
Nimon, Wesley and Beghin, John, "Are Eco-Labels Valuable? Evidence From the Apparel Industry" (1999). Economics Publications. 317.