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Ecological Labelling in North-South Trade

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dc.creator Althammer, Wilhelm
dc.creator Dröge, Susanne
dc.date 2006
dc.date.accessioned 2013-10-16T07:00:20Z
dc.date.available 2013-10-16T07:00:20Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18497
dc.identifier ppn:514843314
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18497
dc.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.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 604
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject L13
dc.subject Q56
dc.subject F13
dc.subject F18
dc.subject ddc:330
dc.subject Ecological Labels
dc.subject Product Differentiation
dc.subject North-South Trade
dc.subject WTO Rules
dc.title Ecological Labelling in North-South Trade
dc.type doc-type:workingPaper


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