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Erscheinungsjahr: 
2010
Schriftenreihe/Nr.: 
IRENE Working Paper No. 10-01
Verlag: 
University of Neuchâtel, Institute of Economic Research (IRENE), Neuchâtel
Zusammenfassung: 
The growing popularity of national efforts to promote eco-labeling raises important questions. In particular, developing countries fear that the eco-label can deliberately impose the environmental concern of (high income) importing countries on their production methods. Yet, empirical studies of the adoption of eco-labelling schemes at the cross-country level are scarce due to the lack of data availability. In this paper, the decision to introduce an eco-label is analyzed through a heteroskedastic Bayesian spatial probit, which allows the government’s decision to introduce an eco-label to be influenced by the behaviour of the neighbouring countries. The estimation is performed by extending the joint updating approach proposed by Holmes & Held (2006) to a spatial framework. Empirical evidence highlights the importance of a high stage of development, innovation experience and potential scale effects in the implementation of an eco-label scheme. In addition, results confirm the existence of a strategic interdependence in the eco-label decision.
Schlagwörter: 
Bayesian Spatial Probit
International Trade
Environmental Policy
Eco-labelling
JEL: 
F18
C11
C25
Dokumentart: 
Working Paper

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