Modelling of eco-innovation diffusion: The EU eco-label

The aim of this article is to carry out a theoretical and empirical analysis of the process of eco-label diffusion. Eco-labels allow consumers to identify products and services that have a reduced environmental impact during their life cycle. Thus, they are aimed at diminishing the information gap between sellers and buyers. The results of the estimation using the Bass model indicate that the diffusion of the EU eco-label has been most dynamic in countries such as Hungary, Poland, Denmark, Germany and France. In turn, the scope of diffusion (absolute saturation level) reached the highest value for companies in France and Italy. In addition, the results of the study confirm the stimulating impact of the scope of eco-label diffusion on consumer awareness of environmental issues. This finding points to the need for environmental education among consumers, which could in turn encourage firms to undertake pro-environmental actions.