Ecocertification, differentiation in retailing and upstream market power
by Lisette Ibanez, Jacques Laye
International Journal of Agricultural Resources, Governance and Ecology (IJARGE), Vol. 7, No. 1/2, 2008

Abstract: The purpose of ecocertification in the forest sector is to guarantee a sustainable management of the forest resources by the producers (forest owners) and define production rules for the transformation industry. We propose an analysis of the ex-post impact of ecocertification, when it is, on the one hand, a way for retailers to differentiate their products, that may lead, on the other hand, to a reinforcement of producers' market power. We build a model of vertical relationships where two supply chains are in competition, one sells ecocertified wood products, whereas the other sells standard wood products. We show that certification is always profitable for the ecocertified retailer and welfare enhancing. However, if ecocertification works as a catalyst for coordination among producers, the ecocertified retailer can be at a disadvantage if the differentiation between ecocertified and standard wood products is not clear enough in the eyes of the consumer. Interestingly, in this case, only the producers and the retailer of standard wood products benefit from the ecocertification initiated by the ecocertified retailer.

Online publication date: Sun, 03-Feb-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Agricultural Resources, Governance and Ecology (IJARGE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com