What drives a textile firm to adopt an eco-label?

Authors

Naveed Hayat, Pakistan Institute of Development Economics (PIDE)Follow
Anwar Hussain, Pakistan Institute of Development Economics (PIDE)
Heman Das Lohano, Institute of Business Administration, Karachi, Pakistan

Abstract

This paper investigates the factors that influence a textile firm’s decision to adopt an eco-label. Logit regression is conducted using data from 128 textile firms listed on the Pakistan Stock Exchange. Results reveal that environmental performance, profitability, market share and firm size have significant positive effect on the adoption of eco-labels whereas tax burden has a significant negative effect. Furthermore, an exporting textile firm is more likely to adopt an eco-label than the others. Likewise, a yarn manufacturing firm is more likely to take on an eco-label relative to a fabric or textile composite manufacturing firm.

Keywords

Eco-label, Environment friendly products, Textile, Exporting firm, Logit regression

DOI

https://doi.org/10.54784/1990-6587.1034

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Hayat, N., Hussain, A., & Lohano, H. D. (2018). What drives a textile firm to adopt an eco-label?. Business Review, 13(1), 1-20. Retrieved from https://doi.org/10.54784/1990-6587.1034