Table 2.
Summary of results with two emerging patterns of VSS trade effects
| Sustainability trading-up | Market access and price competition | |
|---|---|---|
| Estimated trade effects of VSS coverage |
↑ trade volumes ↑ export price |
↑ trade volumes ↓ export price |
| Heterogeneity across commodities and VSS | ||
| Commodities | oil palm, cocoaa | banana, tea, soy, sugarcanea |
| VSS | RSPO, IFOAM, UTZa | GlobalGAP, ProTerra, RA, 4C, Bonsucroa |
| VSS – commodities | Fairtrade tea, sugarcane, coffee, cocoa | Fairtrade banana |
| VSS design matters | ||
| VSS stringency | More stringent VSS | less stringent VSS |
| Substantive stringency (requirements) | More stringent environmental, ethical and managerial requirements | |
| Procedural stringency (compliance procedures) | More stringent control and enforcement | |
VSS Voluntary Sustainability Standards, RA Rainforest Alliance, Fairtrade Fairtrade International, RSPO Roundtable on Sustainable Palm Oil, IFOAM IFOAM Organics International (umbrella organization representing organic VSS).
aFor cocoa, sugarcane, UTZ, and Bonsucro, estimated export volume effects are less consistent.