Are Eco-Labels Valuable? Evidence from the Apparel Industry
- Citation data:
American Journal of Agricultural Economics, ISSN: 0002-9092, Vol: 81, Issue: 4, Page: 801-811
- Publication Year:
- Repository URL:
- https://lib.dr.iastate.edu/econ_las_pubs/317; https://lib.dr.iastate.edu/card_workingpapers/243; https://works.bepress.com/john-beghin/143
- Agricultural and Biological Sciences; Economics, Econometrics and Finance; dyes; eco-labels; hedonic price; organic-cotton apparel
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.