ABSTRACT
This chapter examines the theory of industrial strategy behind eco-labeling and then review the negotiations for a successful eco-label: the European eco-label for indoor paints and varnishes. Whereas this kind of analysis focuses on the behavioral and design dimensions of the eco-labeling process, other authors have focused on the performance of firms in a market with an eco-label. The debate was so intense that some member states were systematically opposing the development of E.U. eco-labels that had not been developed on the basis of a fully quantified life-cycle analysis. Although these criteria were in line with the ones underlying existing national eco-labels on paint products, most of CEPE's criteria were not quantified, thus making it impossible to predict the selectivity of the trademark. The paint industry fulfilled its goal by influencing the course of negotiation with the information it provided about paint products and their market shares.
