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:
1999
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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
DOI:
10.2307/1244325
Author(s):
W. Nimon; J. Beghin; Wesley Nimon; John Beghin
Publisher(s):
Oxford University Press (OUP)
Tags:
Agricultural and Biological Sciences; Economics, Econometrics and Finance; dyes; eco-labels; hedonic price; organic-cotton apparel
article description
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.