Are Eco-Labels Valuable? Evidence From the Apparel Industry

Date
1999
Authors
Nimon, Wesley
Beghin, John
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Altmetrics
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Research Projects
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Economics
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Abstract

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.

Description

his working paper was published as Nimon, Welsey and John Beghin, "Are Eco-Labels Valuable? Evidence From the Apparel Industry," American Journal of Agricultural Economics 81 (1999): 801–811, doi:10.2307/1244325.

Keywords
dyes, eco-labels, hedonic price, organic-cotton apparel
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