Effects of carbon reduction labels: Evidence from scanner data

Mika Kortelainen; Jibonayan Raychaudhuri; Beatrice Roussillon

doi:10.1111/ecin.12278

Effects of carbon reduction labels: Evidence from scanner data

Mika Kortelainen, Jibonayan Raychaudhuri, Beatrice Roussillon

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21 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 language	English
Pages (from-to)	1167–1187
Number of pages	21
Journal	Economic Inquiry
Volume	54
Issue number	2
Early online date	26 Oct 2015
DOIs	https://doi.org/10.1111/ecin.12278
Publication status	Published - Apr 2016

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10.1111/ecin.12278Licence: CC BY-NC-ND

Effects of Carbon Reduction Labels : Evidence from Scannner Data
© 2015 The Authors. Economic Inquiry published by Wiley Periodicals, Inc. on behalf of Western Economic Association International. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made
Final published version, 518 KBLicence: CC BY-NC-ND

Cite this

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title = "Effects of carbon reduction labels: Evidence from scanner data",

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.",

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AB - 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.

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