In this paper we analyze the effectiveness of eco-labels in reducing the supply of eco-unfriendly products. We focus on the situation where a labeled product is viewed by consumers as a private good and develop a theoretical model to pin down theinteraction between consumers' willingness to pay...

A large proportion of internationally traded goods are subject to labor standards and this proportion is on a continuing rise. Such developments created a hot debate about the impact of labor standards on trade, but there has been no clear international consensus on the net costs and benefits...