Nimon, W.; Beghin, John C.

Labelling Strategies in Environmental Policy, The International Library of Environmental Economics and Policy series, Ashgate Publishing LImited, (November 2008)

Using U.S. apparel catalog data, 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 heterogenous pricing of the organic-fiber attribute and find no evidence of different premia across firms. A reprint of an article in the AJAE in 1999.

Keywords: eco-labels, organic-cotton apparel, dyes, hedonic price, labeling, textiles, green label