Optimal eco-labeling strategy with imperfectly informed consumers

Fan, Tijun; Song, Yang; Cao, Heng; Xia, Haiyang

doi:10.1108/imds-06-2018-0256

Cited by 12 publications

(7 citation statements)

References 32 publications

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“…Walter and Chang (2017) analyzed the welfare effects of environmental policies in environmental and consumer heterogeneity competitive markets using a vertical differentiation model. Fan et al (2019) studied the optimal ecological label selection problem for consumer groups that are divided into fully informed and partially informed. Zhang and Zhang (2021) segmented complementary markets based on the heterogeneity of consumer preferences for complementary products according to consumer consumption habits.…”

Section: Literature Reviewmentioning

confidence: 99%

Research on enterprise production decision‐making considering consumer heterogeneity under carbon labeling system

Jin,

Shen,

Dabuo

2024

Manage Decis Econ

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The article focuses on consumers with heterogeneous preferences for product carbon footprints under two carbon labeling systems: carbon reduction labels and carbon footprint labels. Using mathematical models, the study explores the optimal decision‐making behavior of enterprises under the carbon labeling system based on consumer utility theory at the enterprise level. It also investigates consumer surplus, environmental improvement, and social welfare under different production modes of the carbon reduction label and carbon footprint label systems at the societal level. The research findings are as follows: (1) At the level of economic benefits for enterprises, choosing to produce products with carbon reduction labels is more favorable when the investment costs for emission reduction are high, while choosing to produce products with carbon footprint labels is more favorable when the investment costs for emission reduction are low. The optimal prices of products under the two carbon labeling systems show opposite trends compared to the investment costs for emission reduction. (2) At the level of environmental benefits for enterprises, under the carbon reduction labeling system, whether through full production or a mixed production mode, enterprises are only willing to reduce the carbon footprint of products to the standard value. However, under the carbon footprint labeling system, especially in the mixed production mode, enterprises show a stronger willingness to overachieve in emission reduction target. (3) At the level of social benefits, compared to the situation under the carbon reduction labeling system, when the investment costs for emission reduction are low, the carbon footprint labeling system is more favorable in terms of consumer surplus and social welfare. However, this advantage gradually diminishes as the investment costs for emission reduction increase. (4) Excessive investment costs for emission reduction are detrimental to the implementation of both carbon reduction and carbon footprint labeling systems. The research conclusions suggest that companies should develop appropriate production strategies based on actual circumstances. Additionally, it is necessary for both the government and companies to reduce investment costs in emissions reductions by improving the system and optimizing emission reduction methods in order to better implement carbon labeling policies.

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Section: Literature Reviewmentioning

confidence: 99%

Research on enterprise production decision‐making considering consumer heterogeneity under carbon labeling system

Jin,

Shen,

Dabuo

2024

Manage Decis Econ

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“…Environmental Management and Sustainable Development ISSN 2164-7682 2023 production chain participation (Crippa, 2019;Crippa et al, 2020). The role of supply chains has been addressed in studies as a requirement for enterprises to adopt mitigating measures at all stages of the product life-cycle (Acquaye et al, 2015;Fan et al, 2019;Wojnarowska et al, 2021). The articulation among manufacturing partners creates an atmosphere favorable to identifying priorities for general environmental impact reduction (Acquaye et al, 2015).…”

Section: Epd Has Appropriate Data For Designing New Product Initiativ...mentioning

confidence: 99%

“…Following a global trend, organizational solutions propose improvements to cleaner production with less negative environmental impact (Roh et al, 2022;Wang et al, 2019). Labeling is used as an environmental strategy to create internal and external tactics that raise exposure for organizations, with consequences for reputation and operational performance (Andersen & Bams, 2022;Fan et al, 2019;Song et al, 2019;Yenipazarli, 2015;Wang et al, 2015;Wen & Lee, 2020).…”

Section: Introductionmentioning

confidence: 99%

Environmental Product Declaration Approaches on the Brazilian Experiences: A Review

Brito

Silva

2023

EMSD

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The Environmental Product Declaration (EPD) is a type of label that has been considered reliable and complete, and it is commonly used in purchasing decisions, product design definition, environmental communication, data sources, and other applications. This article examines the approaches for the development of EPD in the Brazilian context, taking into account the initiatives of interested parties as well as the circumstances for its adoption by national firms. This work adds value by assessing which works in Brazilian literature and experiences focus on EPD, contextualizing the issue, and offering this type of label as a strategic resource. Between 2015 and 2022, the bibliographical survey uncovered 20 works. The Prisma 2020 checklist was utilized to conduct the systematic review, and the analysis in this study was both quantitative and qualitative. Since NBR ISO 14025 (2015), the publications have been consistent. Only 35% of the review content was obtained from journals, with 6 of the 7 publications resulting from academic works from their authors' postgraduate training processes, indicating a concentration of studies by a few scholars, all linked to universities in Brazil's south and southeast. Studies have shown that EPD is a valuable tool for environmental management due to its consistency, reliability, and completeness of data. However, due to a lack of Brazilian experience, this resource is not commonly known, disseminated, or employed. EPD has potential to be used as a strategic resource for businesses due to Brazil's normative, legal, and structural conditions for adoption.

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“…Green consumption decision is seen to be affected by psychological factors like altruistic values, concern for the environment, environmental knowledge, skepticism towards environmental claims of manufacturers, attitudes toward green consumption, and intention to buy green products ( (Fan et al, 2019;Mostafa 2006;Peattie & Collins, 2 0 0 9 ) . T h e s e a l s o i n c l u d e s o m e o f t h e psychographic variables used for market segmentation viz.…”

Section: Psychological Factorsmentioning

confidence: 99%

“…Responsibly-managed eo-labels are important for promoting sustainability (Atkinson & Rosenthal, 2014;Daugbjerg et al, 2014;Fan et al, 2019). An obligation on the part of the certifying parties to minimize or eliminate the environmental footprint of a particular product and apply ethical sourcing policies (Brach et al, 2018;Nekmahmud & Fekete-Farkas, 2020) Lack of trust of consumers on eco labels is sometimes seen as countering the positive influence of eco-labels on GPI and GPB.…”

Section: Quality and Pricementioning

confidence: 99%

Factors Determining Sustainable Consumption Behaviour: A Guiding Framework from Literature

Kharbanda¹,

Singh²

2022

purushartha

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One of the most pressing issues facing the world today is that of rapid degradation of the environment caused by the incessant use of natural resources for satisfying human material needs. A solution to this lies in transitioning from consuming conventional to eco-friendly products which have the least adverse impact on the environment. This study has attempted to identify the factors that determine or impact this sustainable consumption. Drawing conclusions from the extant literature, this study has listed all the determinants of sustainable consumption studied by researchers in different parts of the world in the last decade. Thirty-two factors, segregated into five broad categories viz. Endogenous, Exogenous, Situational, Product Attributes, and Demographic have been identified. It is clear that the factors work individually or in combination with each other to impact sustainable consumption behaviour, directly or indirectly, and sometimes act as moderating and mediating variables. This study shall provide pointers for future research to understand consumer behaviour concerning green products. The findings of this comprehensive study shall guide marketers and policymakers in formulating strategies to promote green consumption, in any part of the world. This paper is divided into four sections. The first section gives an introduction and lists out the research questions which the authors have attempted to answer in this study. The second section outlines the research methodology used. All the factors or determinants have been discussed in the third section. The paper concludes by giving future research prospects the current study opens up and its contribution in the form of policy recommendations.

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Optimal eco-labeling strategy with imperfectly informed consumers

Cited by 12 publications

References 32 publications

Research on enterprise production decision‐making considering consumer heterogeneity under carbon labeling system

Research on enterprise production decision‐making considering consumer heterogeneity under carbon labeling system

Environmental Product Declaration Approaches on the Brazilian Experiences: A Review

Factors Determining Sustainable Consumption Behaviour: A Guiding Framework from Literature

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