Public, Private and Nonprofit Regulation for Environmental Quality

19 Pages Posted: 27 Apr 2009

See all articles by Lucie Bottega

Lucie Bottega

affiliation not provided to SSRN

Jenny De Freitas

affiliation not provided to SSRN

Abstract

This paper studies the welfare implications of different institutions certifying environmental quality supplied by a monopoly. The monopolist can voluntarily certify the quality of the product through an eco-label provided either by an NGO or a for-profit private certifier (PC). The NGO and the PC may use advertisement to promote the label. We compare the NGO and PC regimes with the regime where the regulator imposes a minimum quality standard. The presence of a private certifier in the market decreases the scope for public intervention. The availability of green advertisement reinforces the above result.

Suggested Citation

Bottega, Lucie and De Freitas, Jenny, Public, Private and Nonprofit Regulation for Environmental Quality. Journal of Economics & Management Strategy, Vol. 18, Issue 1, pp. 105-123, Spring 2009, Available at SSRN: https://ssrn.com/abstract=1378274 or http://dx.doi.org/10.1111/j.1530-9134.2009.00209.x

Lucie Bottega (Contact Author)

affiliation not provided to SSRN

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Jenny De Freitas

affiliation not provided to SSRN

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