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Too much of a good thing? Why altruism can harm the environment?

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  • Grolleau, Gilles
  • Ibanez, Lisette
  • Mzoughi, Naoufel
Abstract
Success of eco-labeling schemes, broadly defined, varies among products and across countries. Based on a simple theoretical framework, we show that the nature of environmental attributes among products (i.e., private versus public) and the consumer type (i.e., egoist versus altruist) shape the overall performance of such schemes. In addition, we demonstrate that altruistic consumers exhibiting a too high willingness to pay for the eco-labeled product can inadvertently prevent egoistic consumers from purchasing it, leading to a sub-optimal outcome in terms of environmental performance. Several policy and managerial implications are drawn.

Suggested Citation

  • Grolleau, Gilles & Ibanez, Lisette & Mzoughi, Naoufel, 2009. "Too much of a good thing? Why altruism can harm the environment?," Ecological Economics, Elsevier, vol. 68(7), pages 2145-2149, May.
    • Handle: RePEc:eee:ecolec:v:68:y:2009:i:7:p:2145-2149
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    3. Maccarrone, Giovanni & Marini, Marco A. & Tarola, Ornella, 2023. "Shop Until You Drop: the Unexpected Effects of Anticonsumerism and Environmentalism," FEEM Working Papers 330384, Fondazione Eni Enrico Mattei (FEEM).
    4. Marija Bockarjova & Piet Rietveld & Erik T. Verhoef, 2012. "Composite Valuation of Immaterial Damage in Flooding: Value of Statistical Life, Value of Statistical Evacuation and Value of Statistical Injury," Tinbergen Institute Discussion Papers 12-047/3, Tinbergen Institute.
    5. Marco A. Marini & Ornella Tarola & Jacques-François Thisse, 2022. "When is Environmentalism Good for the Environment?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(1), pages 1-28, May.
    6. Poret, Sylvaine, 2019. "Label wars: Competition among NGOs as sustainability standard setters," Journal of Economic Behavior & Organization, Elsevier, vol. 160(C), pages 1-18.
    7. Hoffmann, Stefan & Lasarov, Wassili & Reimers, Hanna, 2022. "Carbon footprint tracking apps. What drives consumers' adoption intention?," Technology in Society, Elsevier, vol. 69(C).
    8. Katherine Fuller & Carola Grebitus & Troy G. Schmitz, 2022. "The effects of values and information on the willingness to pay for sustainability credence attributes for coffee," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 775-791, September.
    9. Mireille Chiroleu-Assouline, 2016. "Multiple Standards: the Case of the French Building Industry," Policy Papers 2016.08, FAERE - French Association of Environmental and Resource Economists.
    10. Mohamed Akli Achabou & Adel Rink, 2014. "Barrières et motivations pour la consommation des produits de la mode éthique en France," Working Papers 2014-138, Department of Research, Ipag Business School.
    11. Florian Felix Klein & Agnes Emberger-Klein & Klaus Menrad, 2020. "Indicators of Consumers’ Preferences for Bio-Based Apparel: A German Case Study with a Functional Rain Jacket Made of Bioplastic," Sustainability, MDPI, vol. 12(2), pages 1-20, January.
    12. Fuerst, Franz & McAllister, Pat, 2011. "Eco-labeling in commercial office markets: Do LEED and Energy Star offices obtain multiple premiums?," Ecological Economics, Elsevier, vol. 70(6), pages 1220-1230, April.
    13. Walter, Jason M. & Chang, Yang-Ming, 2020. "Environmental policies and political feasibility: Eco-labels versus emission taxes," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 194-206.

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