A.V. Manjunatha, Y. Nagaraju and Sudarshan Sampath
Abstract
Eco-labeling initiatives have shown great promise as a market based mechanism to reduce environmental damage caused by environmentally degrading production techniques. This paper describes the history of eco-labeling initiatives, from both a global broad perspective and from the Indian perspective. Starting with the first eco-labeling schemes in Germany through its expansion across the Western world, this paper examines how eco-labeling has reduced asymmetric information between producers and consumers. Furthermore, this paper also examines how eco-labeling has changed production practices in Indian agriculture and its positive effects on the environment along with barriers to entry regarding the adoption of eco-labeling initiatives in developing countries.