Eco-labelling

by Williams, Wendy

Due to the interdisciplinary nature of eco-labelling, the sense of the phenomenon itself is lost when studied in isolation. With this consideration, a balance of research between practical and theoretical approaches, between environmental sociology, environmental economics, international trade relations, consumer society, sustainability and marketing theory was explored. Eco-labelling has far-reaching ramifications in society, not just in the commercial relationship between producer and consumer, but in socio-cultural norms and values. It combines economic and social forces via the marketplace. The research of this paper focuses on 1) the socio-cultural aspects of eco-labelling, 2) the economic incentive which drives eco-labelling and 3) the global institutional structures which influence the eco-labelling dimension. Chapter 1 provides an overview of eco-labelling and introduces ecological modernisation, the theoretical foundation of this paper. Chapter 2 is a summary of interviews which were conducted with eco-labelling managers around the world. Chapter 3 analyses the economic impact of eco-labelling, the effects on international trade and the environment, and how ecolabelling affects consumers and producers. Chapter 4 deals with the social context of ecolabelling, and the social paradigms of consumer society and sustainability, merging in the case of ecological modernisation. Chapter 5 looks at opportunities and challenges to ecolabelling, and concrete recommendations with respect to the design of eco-labelling programmes are made. Eco-labelling is the only tool which functions within the conflicting social forces of consumer society and sustainability. As a market-based instrument for environmental management that functions within the producer - consumer relationship, eco-labelling can be seen as the ecological marketisation of consumer society. Best practices in eco-labelling rely on accepting the fundamental market principles combined with social trends. Key words: economics of eco-labelling, international trade and eco-labelling, branding and eco-labelling, production - consumption relationship, consumer society, sustainability, ecological modernisation, ecological marketisation Contact: Wendy Williams Gut Aichhof 3034 Maria Anzbach Austria Mobile + 43 676 934 6690 Tel/Fax + 43 2772 55 861 Email: williams@mcorp.at 2