Are eco-labels valuable? Evidence from the apparel industry

W. Nimon, J. Beghin

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)801-811
Number of pages11
JournalAmerican Journal of Agricultural Economics
Volume81
Issue number4
DOIs
StatePublished - Nov 1999
Externally publishedYes

Keywords

  • Dyes
  • Eco-labels
  • Hedonic price
  • Organic-cotton apparel

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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