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The Potential Role of Carbon Labeling in a Green Economy

Mark Cohen and Michael P. Vandenbergh

RFF Working Paper Series from Resources for the Future

Abstract: Over the past several years, labeling schemes that focus on a wide range of environmental and social metrics have proliferated. Although little empirical evidence has been generated with respect to carbon footprint labels, much can be learned from our experience with similar product labels. We first review the theory and evidence on the influence of product labeling on consumer and firm behavior. Next, we consider the role of governments and nongovernmental organizations, concluding that global, multistakeholder organizations have a critical part to play in setting protocols and standards. We argue that it is important to consider the entire life cycle of a product being labeled and develop an international standard for measurement and reporting. Finally, we examine the potential impact of carbon product labeling, discussing methodological and trade challenges and proposing a framework for choosing products best suited for labeling.

Keywords: carbon labels; voluntary disclosure; consumer behavior; life-cycle analysis; rebound effect; leakage (search for similar items in EconPapers)
JEL-codes: D82 F18 K32 L15 M31 Q54 (search for similar items in EconPapers)
Date: 2012-04-17
New Economics Papers: this item is included in nep-ene and nep-env
References: Add references at CitEc
Citations: View citations in EconPapers (59)

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