Eco-Labelling and the Gains from Agricultural and Food Trade: A Ricardian Approach

Following a modern Ricardian approach, trade in environmental products with eco‐labelling is modelled. Based on the model, expressions are derived for the share of products an importer purchases from a specific exporter for low‐cost and environmentally‐friendly technologies. It is then shown that, using bilateral trade and production data, the share equation for low‐cost‐technologies can be estimated, from which parameters describing trade costs and average productivity can then be retrieved. Using the latter parameters, it is also shown how the share equation for environmentally‐friendly technologies can then be used to retrieve a parameter describing eco‐labelling costs. The consumer and environmental gains from eco‐labelling are also analyzed, along with a discussion and comparison of the effects of mutual recognition versus harmonization of countries’ eco‐labelling regimes.


Issue Date:
2016
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/235973
Total Pages:
30
JEL Codes:
F11; F14; F15; Q17; Q56




 Record created 2017-04-01, last modified 2017-08-29

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