Premium
Are Eco‐Labels Valuable? Evidence From the Apparel Industry
Author(s) -
Nimon Wesley,
Beghin John
Publication year - 1999
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1244325
Subject(s) - clothing , business , valuation (finance) , price premium , pricing strategies , industrial organization , commerce , willingness to pay , marketing , microeconomics , economics , finance , history , archaeology
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.