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| Author: | Beaulieu, E. Gaisford, J. |
| Title: | Labour and Environmental Standards: The 'Lemons Problem' in International Trade Policy |
| Journal: | World Economy
2002 : JAN, VOL. 25:1, p. 59-78 |
| Index terms: | LABOUR ENVIRONMENT TRADE POLICY |
| Language: | eng |
| Abstract: | The main emphasis of this article is on concerns pertaining to direct consumption of non-conforming goods. When households would prefer to directly consume products made according to recognised standards, they would be willing to pay a price premium to consume conforming goods. There is considerable evidence from many countries and with respect to several different products that consumers do not treat goods they know were produced according to nationally or internationally agreed labour and environmental standards as perfect substitutes for goods that contravene those standards. In this article, the authors examine various alternative policy responses to differences in labour and environmental standards. |
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