Eco-labels as a communication and policy tool: a comprehensive review of academic literature and global label initiatives

Abstract

Eco-labels are one potential tool to facilitate communication between producers and consumers and to promote environmental and social policies. The main objective of this study is to investigate the successes and limitations of eco-labels through a comprehensive review of the academic literature and the label programs themselves, and to discuss the potential and directions for future academic research and eco-labels. The initial literature review examined the definition, characteristics, objectives, successes, and challenges of eco-labels and identified essential elements of successful labeling, such as consumer awareness and acceptance. The subsequent review of label programs examined the characteristics and trends of 456 label programs in 199 countries based on a large eco-label database. Several additional analyses comprehensively synthesized the results of these two studies and provided specific suggestions for future academic research and label programs. In conclusion, at this time there is limited evidence that eco-labels can serve as effective communication and policy tools. However, there also remain significant improvement opportunities for many label programs to realize their potential.