We model competing ecolabels sponsored by an industry trade association and an environmental group. For either sponsor in autarky, multi-tier labels are more attractive when there are many producers with high cost of quality, and the cost gap between low-cost and high-cost firms is large. When...

The adoption of domestic emissions trading schemes (ETS) can impose a heavy burden on energy-intensive industries. In particular, energy-intensive industries competing with foreign competitors could lose their international edge. Although the abatement of carbon dioxide (CO2) emissions in...