Eco-labeling and information asymmetry: a comparison of five eco-labels in the Netherlands

• Published in: Journal of cleaner production Vol. 16; no. 3; pp. 263 - 276
• Main Authors: van Amstel, Mariëtte, Driessen, Peter, Glasbergen, Pieter
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01-02-2008
• Subjects: Consumer assurance; Eco-label; Environmental impact; Information asymmetry; Producer compliance; Netherlands; Consumer assurance; Eco-label; Information asymmetry; Producer compliance; Environmental impact
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2006.07.039

Eco-labels have become commonplace instruments of self-regulation. This paper analyzes five food labels with respect to the reliability of their information. A new method to analyze reliability is developed. For each label, four aspects are examined: (1) mention of biodiversity; (2) reference to rule of law to assure buyers’ confidence; (3) notification of farmers’ compliance; and (4) information on ecological impact. The analysis reveals that eco-labels fail to communicate adequately; they do not diminish the information gap between seller and buyer. The main shortcomings of the eco-labels were found in their ambiguity about environmental themes, their failure to assure the buyer about the product's ecological impact, the insufficient information about producers’ compliance, and presence of recommendations.