About the Project
The project is based on three theoretical perspectives – the relationship between consumption and globalisation; theories to explain consumer attitudes; and the implications of evolution of governance for the standardisation and emergence of environmental labels. The project will try to study economic, social, cultural and political implications of environmental standards and how quality attributes related to environmental concerns are defined and developed in relation to textiles and clothing (T&C), as well as how they are managed in the Northern and Southern hemisphere.
The objective is to promote dialogue on environmental standards and labels between producers in the South and consumers in the North, especially those associated with India and Europe (the emphasis would be on Norway but the cases of Germany, Sweden and France will also be studied in detail); generate estimates and ascertain stakeholder perceptions of net welfare benefits from such standards/labels; and thereby recommend changes in associated systems of governance to augment such net welfare levels.
Given its vast scope, this two year study will be restricted to the textile sector. The methodology would consist on an advanced econometric application of data collected from online and field surveys (stratified random sample of 100 firms) respectively in Europe and India, using a dummy variable model, to determine the degree to which environmental and social labels function or can potentially function as a communicative tool in the European consumer market, as well as identify the costs and benefits associated with the use of such labels along the value chain of textile production and consumption in India and Europe.
Implementing Organisation
CUTS Centre For International Trade, Economics & Environment (CUTS CITEE)
D–217, Bhaskar Marg, Bani Park,
Jaipur 302 016, India
Ph: +91.141.2282821,
Fx: +91.141.2282485
Email: citee@cuts.org
Web: http://www.cuts-citee.org/
Project Partner:
Norwegian Institute for Consumer Research (SIFO)
SIFO, National Institute for Consumer Research
Address: Postboks 4682 Nydalen, 0405
Oslo, Norway
Web: http://www.sifo.no/
Goal
To promote appropriate and optimal use of eco-labels as a means for enhancing environmental sustainability, especially with regard to climate change, consumer welfare in the North and producer profitability in the South
Purpose
To use three theoretical perspectives – the relationship between consumption and globalisation; theories to explain consumer attitudes; and the implications of evolution of governance for the standardisation and emergence of environmental labels — and their empirical applications in the form of econometric use of data collected from field and online surveys to generate improved understanding of the potential of environmental and social labels as a communicative tool among European consumers and Indian producers, and as an effective means for promoting environmental sustainability among the population at large, especially with regard to climate change issues
Immediate Objectives
- To review the emergence of environmental and social labels as an outcome of the recent discourse on green consumption and evolution of governance tools which includes carbon credits
- To use the above review and other empirical tools (online surveys) to determine the degree to which environmental and social labels function as a communicative tool in the European consumer market, and their future potential
- To use econometric application of data from field and internet surveys to identify the costs and benefits associated with the use of such labels along the value chain of textile production and consumption in India and Europe
- To estimate the costs (arising from the mentioned barriers) and benefits associated with these labels to arrive at a measure of net benefit
- To record the perceptions of different stakeholder groups in India and Europe as to whether such labels are trade barriers or facilitators
- To provide recommendations for overcoming/alleviating the adverse or welfare diminishing aspects of these barriers through changes in the standardisation and labelling regimes
- Generation of understanding of how standards and quality attributes related to environmental concerns including carbon credits in T&C are defined, developed and managed both in the Northern and Southern hemisphere.
- Evaluation/estimation of the potential of environmental and social labels as a communicative tool in the European consumer market, for textile products.
- Identification of the benefits and technical, economic and cultural barriers involved in the implementation of eco-labels and standards along the value chain of textile production and consumption in India and selected European countries.
- Recommendations for change in the standardisation and labelling regimes for overcoming these technical, economic and cultural barriers.
- Appreciation and understanding of stakeholder perceptions about carbon credits and green labels – whether these are trade barriers or facilitators.
- Report: Environmental Standards & Trade
- Report: Dynamics of eco-labelling and the need for compliance