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The Impact of Ecolabels and Green Taxes on Market Outcomes
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This review examines the economic mechanisms by which ecolabels and green taxes influence supplier and consumer behavior, with case studies on their use to reduce plastic waste in ocean and fisheries contexts.
Abstract Ecolabels and green taxes aim to achieve more sustainable market outcomes by affecting suppliers’ production and sales behaviour, consumers’ purchasing behaviour, or both. In this chapter, we present the economic rationale for how these approaches may impact suppliers and consumers in various settings and review recent published empirical research on the topic. We focus specifically on examples where ecolabels and green taxes have been used to protect oceans and fisheries by reducing plastic waste and reducing purchases of less sustainable seafood. We conclude by discussing other possible policy instruments and highlight important avenues for future work in pursuing more sustainable market outcomes.
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Research digests by email
When a large batch of papers lands in the Atlas, we read through it and send a short write-up of what stood out.