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This article presents the results of a laboratory experiment and an online multi-country experiment testing the effect of motor vehicle eco-labels on consumers. The laboratory study featured a discrete choice task and questions on comprehension, while the ten countries online experiment included measures of willingness to pay and comprehension. Labels focusing on fuel economy or running costs are better understood, and influence choice about money-related eco-friendly behaviour. We suggest that this effect comes through mental accounting of fuel economy. In the absence of a cost saving frame, we do not find a similar effect of information on CO2 emissions and eco-friendliness. Labels do not perform as well as promotional materials. Being embedded into a setting, which is designed to capture the attention, the latter are more effective. We found also that large and expensive cars tend to be undervalued once fuel economy is highlighted.
Economic growth and increasing population impose long-term risks to the environment and society. Approaches to address the impact of consumption and production on bio-diversity loss, resource availability, climate change, and mounting waste problems on land and in seas have yet not proven to be successful. This calls for innovative approaches to address the complex environmental, social, and economic interrelationships that have to be addressed in transforming to sustainable development. Sustainable Consumption and Production, Volume I: Challenges and Development aims to explore critical global challenges and addresses how consumers, producers, the private sector, international organizations, and governments can play an active role in innovating businesses to support a transitioning towards sustainable consumption and production. The book explores different approaches and innovations to address sustainable consumption and production. It details multiple social and economic contexts to the challenges and developments towards a sustainable consumption and production. The book is of interest to economists, students, businesses, and policymakers. Chapter 14 and chapter 15 are available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.
Eco-labelling is one of the key tools used by policy-makers in many parts of the world to encourage more sustainable production and consumption. By providing environmental information on products and services, eco-labels address both business users and consumers and range from mandatory approaches, such as required product declarations, to voluntary approaches, such as national eco-labels. Eco-labels can play an important role in environmental policy. They reward and promote environmentally superior goods and services and offer information on quality and performance with respect to issues such as health and energy consumption. Eco-labels fit well into a multi-stakeholder policy framework – as promulgated recently by the EU's integrated product policy (IPP) – since the development of criteria for labels and the acceptance in the market requires the involvement of a wide range of different parties, from government and business, to consumers and environmental organisations. However, many eco-labelling schemes have had troubled histories, and questions have been raised about their effectiveness. So, are eco-labels an effective tool to foster the development, production, sale and use of products and to provide consumers with good information about the environmental impacts of those products? Is eco-labelling useful to business as a marketing tool? What factors contribute to the development of successful schemes? More than ten years after its establishment, can the EU Flower be considered a success? Are national eco-labels such as the German Blue Angel and the Norwegian White Swan more effective? Should eco-labels be harmonised? Are eco-labels achieving their original aim of fostering sustainable production and consumption? For which product groups are ISO type I eco-labels appropriate and inappropriate? Are other labels, such as mandatory, ISO type II and ISO type III labels more effective in some cases? Are eco-labels focusing on the main environmental policy targets or just on "low-hanging fruit"? Are eco-labels really linked to other tools of IPP? The Future of Eco-labelling provides answers to all of these questions. Based on a major EU research exercise, the book plots a course for policy-makers to address some of the historic problems with eco-labelling, to learn what works and what doesn't and to move forward with schemes that can make a real difference to sustainable production and consumption.The book analyses the conditions under which eco-labelling schemes-both mandatory and voluntary-are or can become an efficient and effective tool to achieve given objectives; assesses previous experiences with eco-labels in different European countries and the relationship of these schemes with business strategies, IPP and market conditions; defines strategies aimed at linking eco-labels with other IPP measures; explores how eco-labels can be used to encourage sustainable consumption patterns, create green markets, foster innovation and development of green products and services, and implement multi-stakeholder initiatives; and sets out detailed recommendations for the future of eco-labelling.The book will be required reading for policy-makers, businesses involved with eco-labelling schemes and researchers interested in the development of sustainable production and consumption and IPP worldwide.
Eco-labelling programmes have been in existence for many years but their recent growth now extends to many products and services. The academic literature has grown in response and there have been several theoretical and empirical advances. This volume presents the best of previously published research on the design and effects of eco-labelling programmes. Whilst concentrating on the economic literature, the articles also approach the topic from a psychological, sociological and political point of view. Part One focuses on a range of theoretical developments, Part Two on empirical measurements of the effectiveness of eco-labelling, Part Three on the factors that influence the success and design of eco-labelling programmes and Part Four on the effects of eco-labelling on international trade and development.
Eco-labels have been around for almost three decades and although the use of some ecolabels is growing, their effectiveness is still being investigated. This book provides an overview of the main eco-label categories, their meaning and specifications, and
The adverse effects of greenhouse gases progressively raised public awareness. One of the industries that contribute to that as well is the aviation sector. The aviation industry is shaped by a tremendous growth in air passenger numbers, which goes hand in hand with substantially growing emissions of greenhouse gases. Even though the air transport sector is currently rising its efficacy through operational and technological improvements, the new emissions of the growing air traffic outpace the so far achieved emission savings. One possibility to fight against the adverse environmental effects of the aviation industry is nudging mechanisms. These mechanisms have been successfully used as a liberating way of educating and influencing people without setting any laws or raising any taxes on the industry. Eco-labels, as an educative nudge, can be used to create transparency for the air passengers on the environmental impact of their flight and to make the efforts made by airlines visible. This research measures the effect of such eco-labels and its influence on the passengers choice making. A discrete-choice-model experiment incorporates the core of empirical research. An online questionnaire with nine different choice sets consisting of three attributes and three levels each presented to the participants of the survey. In total, 202 respondents completed the entire questionnaire. Eight questions were asked to measure the pro-environmental behaviour (intention) and were used to see differences in the choice model (action). In general, the results show that there is a willingness-to-pay for better ratings of eco-labelled aircraft. The respondents slightly prefer good scores for attributes that measure non-domestic impacts (e.g., total emissions of flight) to characteristics that measure domestic impacts (e.g., noise level or starting and landing emissions). In particular, respondents that have a firm intention of behaving pro-environm.
This anthology discusses important issues surrounding environmental law and economics and provides an in-depth analysis of its use in legislation, regulation and legal adjudication from a neoclassical and behavioural law and economics perspective. Environmental issues raise a vast range of legal questions: to what extent is it justifiable to rely on markets and continued technological innovation, especially as it relates to present exploitation of scarce resources? Or is it necessary for the state to intervene? Regulatory instruments are available to create and maintain a more sustainable society: command and control regulations, restraints, Pigovian taxes, emission certificates, nudging policies, etc. If regulation in a certain legal field is necessary, which policies and methods will most effectively spur sustainable consumption and production in order to protect the environment while mitigating any potential negative impact on economic development? Since the related problems are often caused by scarcity of resources, economic analysis of law can offer remarkable insights for their resolution. Part I underlines the foundations of environmental law and economics. Part II analyses the effectiveness of economic instruments and regulations in environmental law. Part III is dedicated to the problems of climate change. Finally, Part IV focuses on tort and criminal law. The twenty-one chapters in this volume deliver insights into the multifaceted debate surrounding the use of economic instruments in environmental regulation in Europe.
Eco-labels present a promising policy tool in the effort to achieve sustainable consumption. Many questions remain, however, about the extent to which eco-labels can contribute to sustainability efforts and how to maximize their effectiveness. This Article deploys research from evolutionary psychology, behavioral law and economics, and norm theory to offer specific insights for the design and implementation of eco-labels to enhance their influence on sustainable consumer choice. Notably, this research suggests possibilities for eco-labels to shape or expand consumer preferences for green goods, and thereby enhance eco-label influence on consumer behavior by extending it beyond eco-minded consumers. We suggest that public exposure of the label (so that people see it) and the exposure of the purchasing behavior (so that other people can see that you have bought the product) are key elements to the success of eco-labels--the social context around product purchasing may be as important as the eco-label itself.
The attractiveness of product labeling stems from their voluntary nature to achieve environmental and social goals. It is argued that through product price premia which reflect the willingness of consumers to pay more for green and socially conscious products, labels have the potential to generate changes in production techniques. In addition, labeling of products has become the preferred instrument for solving high profile trade disputes amongst members of the World Trade Organization. The contributions in this volume provide an indepth look at labeling and its relation to the governance of global trade. The book aims at bridging the research gaps related to the link between consumers’ perception of a label with their willingness to pay, the impact and the limitations of labeling in the event of food safety hazards, and the trade and development dimensions of labeling. As such, this volume presents research that constitutes a new frontier on issues related to the economics of labeling.