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Journal of Macromarketing
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Micro-Macro Linking Using System Dynamics Modeling: An Examination of Eco-Labeling Effects for Farmed Shrimp

Steven P. Arquitt

Centre for Marine Studies, University of Queensland, Brisbane, Australia

T. Bettina Cornwell

UQ Business School at the University of Queensland

Eco-labeling has been heralded as a market-based approach useful in addressing environmental issues. While a growing number of eco-labeling projects are found in nations around the world, most models examining eco-labeling effects tend to be focused either on environmental impacts or consumer adoption of eco-labeled goods and do not attempt to link consumer behavior to environmental impact. The current article offers a somewhat different approach by using system dynamics modeling to capture both consumer adoption and environmental conservation for a case example of farmed shrimp. Policy analyses conducted via simulations suggest that consumers' willingness to pay for eco-labeled products is influential on the success of eco-labeling initiatives. Raising willingness to pay by appealing to personal health issues through promoting organic products may be an effective policy lever to lessen environmental impacts at production sites.

Key Words: marketing • eco-labeling • modeling • policy • environment

Journal of Macromarketing, Vol. 27, No. 3, 243-255 (2007)
DOI: 10.1177/0276146707302780
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