ABSTRACT
The intention behind the introduction of eco-labels and organic food labels is to make it possible for the consumers to distinguish products less harmful to the environment from other products. Furthermore, consumers’ preference for eco-labelled products could give producers of relatively environmentally friendly products a competitive advantage, allowing them to gradually push less environmentally friendly products out of the market. Such a competitive advantage could give companies an incentive to develop new, and more environmentally benign, products (Th0gersen, 2002).
