Monteiro, JoseAntonio (2010): Ecolabel Adoption in an Interdependent World.

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Abstract
The growing popularity of national efforts to promote ecolabeling raises important questions. In particular, developing countries fear that the ecolabel can deliberately impose the environmental concern of (high income) importing countries on their production methods. Yet, empirical studies of the adoption of ecolabelling schemes at the crosscountry level are scarce due to the lack of data availability. In this paper, the decision to introduce an ecolabel is analyzed through a heteroskedastic Bayesian spatial probit, which allows the government’s decision to introduce an ecolabel 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 ecolabel scheme. In addition, results confirm the existence of a strategic interdependence in the ecolabel decision.
Item Type:  MPRA Paper 

Original Title:  Ecolabel Adoption in an Interdependent World 
Language:  English 
Keywords:  Bayesian Spatial Probit, International Trade, Environmental Policy, Ecolabelling 
Subjects:  F  International Economics > F1  Trade > F18  Trade and Environment C  Mathematical and Quantitative Methods > C2  Single Equation Models; Single Variables > C25  Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C11  Bayesian Analysis: General 
Item ID:  20268 
Depositing User:  JoseAntonio Monteiro 
Date Deposited:  27. Jan 2010 16:20 
Last Modified:  12. Feb 2013 17:37 
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URI:  http://mpra.ub.unimuenchen.de/id/eprint/20268 