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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/18497| Title: | Ecological Labelling in North-South Trade |
| Keywords: | L13 Q56 F13 F18 ddc:330 Ecological Labels Product Differentiation North-South Trade WTO Rules |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Deutsches Institut für Wirtschaftsforschung (DIW) Berlin |
| Description: | We investigate in a horizontal product differentiation model with North-South trade the implications of a home bias in consumers' demand for labelled goods. We compare mutual recognition and international harmonisation of ecological labels with respect to firms' profits and welfare. Northern consumers perceive a warm glow from buying green, but have information problems with imported labelled products. Firms differ in labelling costs which could help a Southern firm to compensate for the home bias under mutual recognition. Under harmonisation the home bias disappears. Welfare analysis of harmonised labelling shows that a Southern firm gains from adopting a harmonised label { even if there is "eco-imperialism". Given the specific trade structure in our model, harmonisation is a beneficial regime except for the case that labelling costs reach a specific treshold. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/18497 |
| Other Identifiers: | http://hdl.handle.net/10419/18497 ppn:514843314 |
| Appears in Collections: | EconStor |
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