Journal Article

Are Eco-Labels Valuable? Evidence From the Apparel Industry

Wesley Nimon and John Beghin

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 81, issue 4, pages 801-811
Published in print November 1999 | ISSN: 0002-9092
Published online November 1999 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244325
Are Eco-Labels Valuable? Evidence From the Apparel Industry

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  • Manufacturing
  • Household Behaviour and Family Economics
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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.

Keywords: dyes; eco-labels; hedonic price; organic-cotton apparel; D120; L670; Q200

Journal Article.  0 words. 

Subjects: Manufacturing ; Household Behaviour and Family Economics ; Renewable Resources and Conservation

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