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The Fortnight

Green tag sells

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Jun 15, 2002 | From the print edition

-- The Danes are going green. One of the first empirical surveys of consumer reaction to ecolabels indicated that consumers in Denmark were willing to pay up to 17 per cent more for some products which were labelled as ecofriendly. Customer reaction to the Nordic Swan ecolabel on various brands of toilet paper, kitchen paper towels and compact laundry detergents was monitored. The choice of toilet paper showed the highest willingness to pay extra for an ecolabelled product, around 17 per cent more. Researchers, however, say that the results may not be representative of buyer behaviour elsewhere. It may be noted that conditions in Denmark are conducive to the success of environmental labels because of public confidence in the government-certified tag.

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