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The Correlates of Procedural Credibility in Transnational Eco-Labeling

`This chapter uses an original dataset comprising information on 123 transnational eco-labeling organizations to probe a series of hypotheses on the conditions for procedurally credible eco-labeling. The hypotheses are divided into three categories that focus on who is governing, where the governance takes place, and what sector or issue area the governance targets. The dataset includes information on best practice adherence across the full population of transnational eco-labeling organizations in 2013. The ensuing statistical analysis casts doubt on neo-Gramscian and rationalist arguments that ownership or sectoral competition are the primary determinants of procedural credibility in eco-labeling. Instead, the regression analyses show eco-labels that are industry sponsored or operating in highly competitive sectors are just as likely to craft credible eco-labels as their independently owned or less competitive counterparts. The statistical results also present a new puzzle, namely, that an eco-label’s presence in multiple markets is strongly and positively correlated with credibility.