Effects of carbon reduction labels: Evidence from scanner data

Mika Kortelainen, Jibonayan Raychaudhuri, Beatrice Roussillon

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)
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Abstract

We investigate the effects of carbon reduction labels using a detailed scanner data set. Using a difference-in-differences estimation strategy, we find that having a carbon label has no impact on detergent prices or demand. We also investigate possible heterogeneous effects of carbon labels using the synthetic control method. We find no evidence to indicate that the prices for the counterfactual detergents without the label would have been any different from the prices of the carbon-labeled detergents. We investigate the reasons for these results and conclude that the specific design of the carbon label is responsible for its lack of success.
Original languageEnglish
Pages (from-to)1167–1187
Number of pages21
JournalEconomic Inquiry
Volume54
Issue number2
Early online date26 Oct 2015
DOIs
Publication statusPublished - Apr 2016

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