The aim of this article is to carry out a theoretical and empirical analysis of the process of eco-label diffusion. Eco-labels allow consumers to identify products and services that have a reduced environmental impact during their life cycle. Thus, they are aimed at diminishing the information...

Is green consumerism beneficial to the environment and the economy? To shed light on this question, we study the political economy of environmental regulations in a model with neutral and green consumers where the latter derive some warm glow from buying a good of higher environmental quality...