Eco-labelling Schemes Research Articles

Eco-labeling and non-product-related process and production methods

Eco-labeling has caused some concerns about international trade, particularly between developed and developing countries, owing to the incorporation of non-product-related process and production methods (PPMs) into eco-labeling criteria. Most countries prefer inclusion of non-product-related PPMs for effectiveness and efficiency of eco-labeling. Using a simple duopoly model, this article compares two eco-labeling schemes: one with inclusion of non-product-related PPMs and the other without. This is done for the case where there has already existed a regulation on the production phase in the form of an emission tax. Counterintuitively, the analysis shows that the exclusion scheme is socially desirable under certain conditions. It reminds us of the importance of the policy mix when introducing eco-labeling. The paper concludes with a discussion of future research directions.

Eco-labeling of electricity—strategies and tradeoffs in the definition of environmental standards

The liberalization of electricity markets opens up new opportunities for electricity providers to differentiate their products along environmental characteristics. Due to considerable search and evaluation costs for the consumer, the success of green power products depends to a large degree on a professional communication strategy. Besides professional marketing, instruments like environmental labeling have attracted considerable attention. The present paper analyzes the fundamentals of voluntary, third-party eco-labeling of electricity products and compares different labeling approaches, which have been developed in Europe and in the US recently. We distinguish six major dimensions along which labeling schemes can differ and identify two main strategies to deal with the basic tradeoffs, correspondingly. Labeling concepts may either be simple, require low or medium environmental standards and strive for the support of at least one stakeholder group. Alternatively, eco-labels may judge a broad range of environmental impacts and integrate several stakeholder groups with opposing interests. Experiences show that labels of the first type can be set up quickly and have the advantage to set a standard early in the market. In the medium and long term, however, public awareness and potential criticisms may rise and rather simple eco-labeling schemes will have to be adapted. The paper finally discusses the prospects for a common European eco-labeling strategy.

Environmentally adapted lubricants, Part II. Hydraulic fluids

Current technologies relating to hydraulic fluids are mostly either mineral based, synthetic based, or water-based. Mineral oil based hydraulic fluids tend to be used for their excellent lubrication characteristics, economic viability, and so account for almost 90% of hydraulic fluids, while waterbased fluids tend to be employed in fire hazard applications. Synthetic hydraulic fluids possess superior properties to mineral oils, but their higher price limits their application to aerospace and special applications under severe conditions. In recent years, biodegradable hydraulic fluids, which are readily decomposed by micro-organisms, have come into focus due to the rise in environmental consciousness in European countries, particularly Sweden and Germany, and with this, vegetable-based fluids. In the present paper, the main categories of hydraulic fluids, including environmentally friendly fluids, are discussed in an overview of the state of technology in this area. Current governmental regulation, and the properties required of environmentally adapted fluids, and an appraisal of the current practices in various countries are also given. In an earlier paper*, the authors reviewed the key aspects of and requirements for environmentally adapted lubricants, namely, chemical composition, eco-toxicity, biodegradability, bio-accumulation, eco-labelling schemes, and life-cycle analysis. In the present paper, the main categories of hydraulic fluids, including environmentally friendly fluids, have been described. In Part I*, the authors reviewed the key aspects of and requirements for environmentally adapted lubricants.

Environmentally adapted lubricants, Part I. An overview

The requirement for environmentally adapted lubricants has begun to play an increasingly important role in many industrial applications, particularly in the last two decades. The present-day requirements for biodegradable and eco-friendly lubricants imply that lubricants have properties that can minimise, if not eliminate, negative environmental impact, such as contamination of soil and water, caused by lost lubrication, leakage and accidents. The dominant factors that have a direct impact on the environment and which characterise the lubricant and its chemical composition, are toxicity, bio-accumulation and biodegradability. Biodegradability is perhaps the most important factor which determines the fate of lubricant in the environment. Various commercial, governmental, and regulatory initiatives exist that protect the interests of the consumer. Life cycle analysis can help in assessing the total environmental impact of lubricants. This paper reviews the essential requirements of environmentally adapted lubricants, i.e., chemical composition, eco-toxicity, biodegradability, bio-accumulation, and eco-labelling schemes, and life cycle analysis.

Environmental labelling in Europe: European and national tasks

This paper considers environmental labelling (or ecolabelling for short) and, in particular, the European Union’s (EU’s) ecolabelling scheme. The procedure and problems of the ecolabelling scheme are described. Besides the EU scheme, many national private and governmental ecolabel schemes also exist in the member states, and this leads to competition among different ecolabelling schemes. It is argued that the disadvantages of such competition are outweighed by the advantages as competition between schemes helps, for example, to alleviate some of the inherent problems of ecolabelling. However, competition can only be beneficial if the competitive process is steered so that it serves consumer interests. To this end, additional institutions and rules should be established to avoid consumer confusion and to provide transparency and to make comparison between ecolabel schemes possible. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.

Eco-Labels: Benefits Uncertain, Impacts Unclear?

The nature of eco-label schemes and the reasons for their introduction; the process by which product groups and eco-labelling criteria are defined and the problems these raise in practice - independence, defining product categories, setting criteria, transparency, the multiplicity of programs; history of eco-labelling and an overview of the schemes which have been introduced; an evaluation of their effectiveness in terms of individual consumers and major corporate consumers; the effect of eco-labelling on trade and the debate as to whether or not they constitute barriers to trade; the place of international trade agreements; the current position; conclusion that close study must continue to determine whether eco-labelling schemes will in the long term succeed or fail.

New Opportunities or Trade Barrier in Disguise? The EC Eco-Labelling Scheme

The EC and other eco-labelling schemes; their voluntary nature; "cradle-to-grave" or "single-issue" bases. Organisation of the EC scheme and the procedure for setting eco-labelling criteria. Applying for an eco-label Costs of participation. The Commission's proposal for a revised scheme. Compatibility of the EC scheme with the WTO Agreement on Technical Barriers to Trade (TBT); whether or not eco-labelling schemes fall within the Agreement; the requirements which would then apply and resulting legal problems. The inclusion in eco-labelling criteria of production processes and methods (PPMs) and consequent difficulties for producers based outside the EC. Conclusion that despite current difficulties (lack of transparency, proliferation of schemes, slowness of implementation, questions of recognition of mutual equivalence of standards, reliance on PPMs, obtaining certification for exporters from developing countries, and the place of the TBT Agreement), the EC scheme remains a valuable marketing tool.

Eco-labelling: success or failure?

Eco-labelling was identified in Agenda 21 as a way of encouraging consumers to alter their consumption patterns and to make wiser use of resources and energy in the drive for sustainable development into the next century. A European-wide eco-labelling scheme was introduced by the European Commission (EC) in 1992 as part of its fifth and most recent Environmental Action Plan, the focus of which is also sustainability. The EC eco-labelling scheme aims to promote products with reduced environmental impacts throughout their life cycle and to provide consumers with better information about the environmental impact of products. This paper assesses whether eco-labelling is an effective means of improving the environment, using the eco-labelling of paper products as a case study. Paper products are examined because the development of their ecolabelling criteria has been a particularly complex and contentious issue. Moreover, although criteria have now been adopted for three groups of paper products, controversy has dominated the criteria-setting process and debate continues about the relevance of the selected criteria. It is concluded that while the concept of eco-labelling is good, the practical application of the concept is not straightforward. Furthermore, at present, there is little evidence of eco-labelling benefitting the environment.

96/06804 Communication. A note on the energy intensity of developing countries

Success of eco-labeling schemes, broadly defined, varies among products and across countries. Based on a simple theoretical framework, we show that the nature of environmental attributes among products (i.e., private versus public) and the consumer type (i.e., egoist versus altruist) shape the overall performance of such schemes. In addition, we demonstrate that altruistic consumers exhibiting a too high willingness to pay for the eco-labeled product can inadvertently prevent egoistic consumers from purchasing it, leading to a sub-optimal outcome in terms of environmental performance. Several policy and managerial implications are drawn.

ECO-LABELLING IN THE EU: A COMPARATIVE STUDY OF THE PULP AND PAPER INDUSTRY IN THE UK AND SWEDEN

A feature of the EC's Fifth Environmental Action Programme is the move away from the use of legislative measures towards the adoption of voluntary and economic market-based instruments to control the environmental impact of industrial activities. Eco-labelling has been adopted by the EC to promote products with reduced environmental impacts throughout their life cycle and to provide consumers with reliable information about the impact of products on the environment. Products that are deemed to be more environmentally friendly than their competitors are identified by a single, distinctive eco-label. The use of one main eco-label across the EU should reduce the confusion that has been created by the use of a large number of labels and environmental claims by producers and retailers. This ESRC-funded research aims to assess whether an eco-award system is an effective means of improving environmental performance, with specific reference to the pulp and paper industry. Comparisons of attitudes to the eco-labelling scheme are being made in France, Germany, Sweden and the UK. Interviews are being conducted with industry, national governments, the EC, competent bodies, consumer organizations and environmental pressure groups. In this way, it will be possible to assess whether an EU-wide scheme is either practical or desirable in one economic sector. Research to date indicates that although the concepts underlying eco-labelling are sound, the existing scheme has several serious weaknesses. If these are not addressed, the credibility of the scheme will be reduced and the real commitment of the EC to environmental policy questioned.

Ecolabelling and cleaner production: principles, problems, education and training in relation to the adoption of environmentally sound production processes

Environmental management and cleaner production are rapidly becoming critical economic, trading, and business competitiveness issues. Many developed countries have already gone through a process of implementing legislation for the protection and enhancement of the environment. The role of business and industry in maintaining environmental quality is now increasingly coming under scrutiny with a view to making them more environmentally friendly. Ecolabelling is a part of this process, which will have an impact on global trade in general and exporting small to medium enterprises (SMEs) in developing countries in particular. The European Union (EU) has currently nearly 400 environmental directives operative. These have to be implemented by all member states of the Union via provisions incorporated in the Laws of every Member State. This growing economic bloc is set to expand and the environmental standards for products traded within it will be of increasing importance to countries which import into it. Irrespective of legislative requirements, EU businesses are now beginning to take account of environmental concerns with regard to their suppliers. Many companies already specify environmental requirements for their suppliers of primary products and manufactured goods. If businesses outside the EU are to expand and compete in the international market-place then they must understand and take into account environmental factors in their markets. This requires a significant increase in the awareness of environmental considerations in as much as they affect trade and production. Environmental education and training is needed to communicate environmental standards and the associated changes in practice and processes to business and industry. This paper will review the provisions laid down under the EU Ecolabelling Scheme, the UK implementation of the provisions, and will review the effects ecolabelling is having and is likely to have on global trade. The paper will conclude by reviewing the tools needed to facilitate environmentally friendly production and ecolabelling, including environmental education and training, and life-cycle analysis.

An appraisal of ecolabelling from a design perspective

This paper considers the design implications of the European ecolabelling scheme. The aims and procedures of this procedures of this product level market instrument are examined and appraised with regard to impact on product design. The paper concludes that ecolabelling, as presently defined, will have a limited affect on promoting widespreads design and provision of environmentally sensitive products. A ‘product selection model’ is therefore proposed that makes for more effective ecolabelling. This in turn is developed to provide an ‘ecodesign emphasis model’ to indicate design options that can shift products towards an optimum and sustainable ‘green’ target.