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Are Eco-Labels Valuable? Evidence from the Apparel Industry

Wesley Nimon and John Beghin
American Journal of Agricultural Economics
Vol. 81, No. 4 (Nov., 1999), pp. 801-811
Stable URL: http://www.jstor.org/stable/1244325
Page Count: 11
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Are Eco-Labels Valuable? Evidence from the Apparel Industry
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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.

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