FACTORS DETERMINING GOVERNMENT TO INTRODUCE NATIONAL ECO-LABEL SCHEME: Case Study of Pakistan Trade Partners 1994-2014

Abstract

The impressive environmental performance of the Blue Angle as a national eco-label scheme of Germany motivated other countries to introduce their own national eco-label schemes. However, there are various factors which determine a country’s government to introduce a national eco-label scheme. This paper investigates factors which compel government to introduce a national eco-label scheme. Panel logit regression is conducted using data from 53 countries that are Pakistan’s trade partners from 1994 to 2014. The main findings indicate that the probability for a government to introduce a national eco-label scheme is positively related to the economic growth, government integrity, population, R&D expenses, high technology exports, manufacturing tariff, number of type I and type II eco-labels, and per capita CO2 emissions. Whereas the probability for a government to introduces a national eco-label scheme is negatively related to economic freedom, export performance, and net trade.

Keywords

• National Eco-Labels
• Environmentally Friendly Products
• Government
• Pakistan
• Trade Partners
• Panel Logit Regression