Greening Potentials and Limits of Eco-Labelling Schemes in the EU

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Södertörns högskola | Institutionen för naturvetenskap, miljö och teknik Masteruppsats 30 hp | Environment, Communication & Politics

Vårterminen 2015

Greening Potentials and Limits of

Eco-Labelling Schemes in the EU

A policy evaluation with a focus on small firms

in the German coffee-processing sector.

Författare: Anna Berkmann Handledare: Paulina Rytkönen

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ABSTRACT

Title: Greening Potentials and Limits of Eco-labelling Schemes in the EU. A policy evaluation with a focus on small firms in the German coffee-processing sector.

Author: Anna Berkmann

As SMEs transformation to sustainable practices in manufacturing, processing and services, is declared to be the key to a green growth model, the research in this thesis aims to understand in what way eco-labelling can be a part of that. In order to approach this complex issue, the thesis aims to identify the greening potential and the limits of contemporary eco-labelling schemes for SME product within the German coffee-processing sector. With regard to that, the thesis applied the policy evaluation method “Program Theory Evaluation” (PTE), which assesses a policy in place and thus provides information how the introduction and the function of eco-labelling schemes is observed and perceived by German coffee-processing SMEs (GCPS). Hence, based on a policy evaluation from a rational perspective, which has the focus on the policy’s problem-solving process and implementation cycle, the thesis reveals how eco-labelling schemes’ underlying theoretical greening strategy act in practice to German coffee-processing SME (GCPS).

Thereby it could be evaluated that eco-labelling schemes imply shortcomings to address and green GCPS high quality coffee products. As the PTE-method aims also on opti- mizing the policy’s rationalisation, the inappropriate or failed implementation of eco- labelling schemes by GCPS has been further explored. To grasp the eco-labelling schemes extent of limits to green GCPS products, the thesis compares and analyses the policy evaluation results against the backdrop of eco-labelling schemes’ normative theoretical policy conception and in the light of “Environmental Authority of Political Consumerism (Ecological Modernisation Theory)”. With regard to that, the thesis fosters a policy learning process and uncovers that eco-labelling scheme eco-labelling schemes potential to green GCPS products is limited and conditioned to this a lower level of sustainable value as they are focused to supply mainly the demand for mainstream coffee products.

Hence, the thesis concludes that it is not the underlying rationality of eco- labelling schemes, namely being a consumer-oriented and market-based policy instrument that does not apply to green GCPS products. However, this opens up a new perspective as it points out a sustainable quality gap between products using eco-labelling schemes and non-labelled GCPS high quality products. In return this raises considerations in terms of improving eco-labelling schemes’ contribution to sustainable development. Thus the thesis argues to optimize their rationalization with regard to GCPS high quality products as frontrunners of tomorrow’s sustainability.

Key words: Eco-labelling schemes, German Coffee-Processing Sector, SME, Policy Evaluation, Program Theory Evaluation, Ecological Modernization Theory, Environmental Authority, EU, Environmental Policy, Sustainable Development.

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Abstract � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � iii Table of Contents � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � v List of Abbreviations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �viii Table of Figures � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �ix

CHAPTER 1 INTRODUCTION . . . 10

1.1 Background . . . .10

1.2 Research Problem and Objective . . . 11

1.3 Research Scope and Limits . . . .12

1.4 Research Purpose . . . .13

1.5 Defining Eco-Labelling Schemes for the German Coffee Sector . . . .14

CHAPTER 2 RESEARCH METHOD AND METHODOLOGY . . . 19

2.1 Methodology . . . .19

2.2 Program Theory Evaluation (PTE) . . . 20

2.2.1 Program Theory Evaluation in Practice . . . 22

2.2.2 The Means Behind Evaluating . . . 24

2.2.3 Merit, Worth and Value . . . 25

2.2.4 “Goal-Attainment Evaluation” . . . 26

2.2.5 “Side-Effect Evaluation” . . . 28

2.3 Methods of Data Collection . . . 29

2.3.1 Secondary Sources . . . 30

2.3.2 Primary Sources . . . 30

2.3.3 Interview Design and Coding Scheme . . . 31

2.3.4 Considerations on Research Design: Limits and Bias . . . 32

CHAPTER 3 PREVIOUS RESEARCH . . . 34

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4.1 Ecological Modernisation Theory (EMT) . . . .37

4.1.1 Ecological Modernisation in Practice and Theory . . . 38

4.1.2 The Transformation of the Industrial Caterpillar . . . 40

The Techno-Corporatist Conception . . . 40

The Reflexive Socio-Institutional Conception . . . 43

4.2 The Consumption Side of the Industrial Caterpillar . . . 46

4.2.1 Citizen-Consumers’ Environmental Authority. . . 47

4.2.2 Environmental Authority of Political Consumerism: Eco-Labelling Schemes.. . . 49

4.2.3 “Should We Leave it to the Environmental Authority?” . . . 50

4.3 The Rationality Behind Eco-Labelling Schemes: An EU Policy Perspective . . . .53

4.4 Close-up Shot: Eco-Labelling Schemes in the German Coffee Sector . . . .56

4.4.1 Fair Trade . . . 57

4.4.2 UTZ . . . 57

4.4.3 Rainforest Alliance . . . 58

4.4.4. EU Organic label . . . 59

4.5 Discussion on the Theoretical Conceptions of Eco-Labelling Schemes . . 60

CHAPTER 5 EMPIRICAL FINDINGS . . . 62

5.1 German Coffee-Processing SMEs—An Overview . . . 62

5.1.1 Business Structure . . . 62

5.1.2 High Quality Coffee . . . 63

5.2 Eco-Labelling Scheme Implementation —GCPS’ Performance and Position . . . 64

5.2.1 Company 1 . . . 65

Eco-Labelling Implementation . . . 65

Eco-Labelling Position . . . 66

5.2.2 Company 2 . . . 67

Eco-Labelling Position . . . 67 vi

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5.2.3 Company 3 . . . 68

5.2.4 Company 4 . . . 71

5.2.5 Company 5 . . . 74

CHAPTER 6 ANALYSIS . . . 77

6.1 Application of the “Goal-Attainment Evaluation” and “Side-Effect Evaluation” . . . .77

6.2 Goal-Attainment Evaluation . . . .78

6.2.1 Goal-Achievement Measurement . . . 79

6.2.2 Impact-Assessment . . . 79

6.3 Side-Effect Evaluation. . . 80

6.3.1 Anticipated Positive and Negative Side-Effects . . . 82

Primary: Providing and Promoting Eco-Labelling schemes . . . 82

Secondary: Gaining Market Interest . . . 83

Tertiary: Raising Consumer Demand . . . 84

6.3.2 Un-Anticipated Positive and Negative Side-Effects . . . 85

Primary: Providing and Promoting of Eco-Labelling Schemes . . . 85

Secondary: Gaining Market Interest . . . 86

Tertiary: Raising Consumer Demand . . . 87

6.4 Discussing the Policy Evaluation Results . . . 89

6.5 In Light of “Environmental Authority” . . . 94

CHAPTER 7 CONCLUSION . . . 101

Acknowledgements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 105 References � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 106 Appendix 1: Goal-Attainment Evaluation Coding � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �115 Appendix 2: Side-Effect Evaluation Coding � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 116 Appendix 3: Interview questions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 120

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BAT . . . Best Available Technique EC . . . European Commission

EPIS . . . Environmental Product Information Scheme EMT . . . Ecological Modernization Theory

EU . . . European Union

FAO . . . Food and Agriculture Organization of the United Nations FSC . . . Forest Stewardship Council

GCPS . . . . German Coffee-Processing SMEs GPD . . . Gross Domestic Product

ICO . . . International Coffee Organization

ISEAL . . . . International Social and Environmental Accreditation and Labelling ISO . . . International Organisation for Standardization

IPP . . . Integral Product Policy

NGO . . . Non-Governmental Organisation

OECD . . . . Organisation for Economic Co-operation and Development PTE . . . Program Theory Evaluation

SME. . . Small and Medium-sized Enterprise TBT . . . Technical Barriers to Trade

UN . . . United Nations

UNECD . . United Nations Economic Commission for Europe UNEP . . . . United Nations Environment Programme

UNOPS . . . United Nations Office for Project Services

WCED . . . World Commission on Environment and Development WTO . . . World Trade Organisation

WWF . . . . World Wildlife Fund

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TABLE OF FIGURES

Figure 1. Classification of EPIS within the European Union . . . . 18

Figure 2. Voluntary Environmental Coffee Product Schemes in Germany . . . . 19

Figure 3. The Simple System Model . . . . 24

Figure 4. The System Model Adapted to Government Intervention Evaluation . . . . . 25

Figure 5. Multiple Normative PTE-model of the Eco-Labelling schemes in Relation to German Coffee-Processing SMEs . . . . 26

Figure 6. The Principles of Good Governance . . . . 27

Figure 7. Goal-Attainment Evaluation Model . . . . 29

Figure 8. Side-Effect Evaluation Model . . . . 30

Figure 9. Ecology’s Emancipation . . . . 49

Figure 10. Comparative Chart on relevant ISO Type I and Type I-like Eco-Labelling schemes . . . . 64

Figure 11. German Coffee-Processing SMEs . . . . 68

Figure 12. Normative PTE-model of Eco-Labelling schemes . . . . 83

Figure 13. Goal-Attainment Evaluation Model . . . . 84

Figure 14. Side-Effect Evaluation Model . . . . 87

Figure 15. Normative PTE-model of Eco-Labelling schemes; indicated with Outcome1=defect . . . . 97

Figure 16. Normative PTE-model of Eco-Labelling schemes; indicated with Outcome1=defect, Outcome2=positive, Final Policy Goal=positive. . . . . 98

Figure 17. Modification of the normative PTE-model of Eco-Labelling schemes . . . . . 99

Figure 18. Normative PTE-model of Eco-Labelling schemes; indicated with Environmental Authority of Political Consumerism . . . 101

Figure 19. Modification of normative PTE-model of Eco-Labelling schemes in relation to Environmental Authority of Political Consumerism . . . 101

Figure 20. a) Demand and Supply of Coffee Products with different Sustainable Quality . . . 103

b) Demand and Supply of Coffee Products with different Sustainable Quality . . . 104

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CHAPTER 1 INTRODUCTION

1.1 BACKGROUND

In the 1960s and 1970 citizens of “advanced industrialized democratic states”¹ were no longer willing to accept environmental degradation in the form of local air pollution, waste mountains, etc. As a result the industry’s detrimental impact on the environment became a matter of public concern. The understanding of pollutions regional and global effects emerged and pushed the subject of environmental protection and preservation onto the level of international politics. To address the source of environmental degradation, domestic legal actions and environmental policy instruments were developed.

In the beginning, environmental policy approaches focused mostly on interventions and measurements for regulating industrial point sources of pollution. Regulation for the installation of catalytic converters to reduce the caused emission is one example.

Along such reactive end-of-pipe solutions, product-related environmental policies and marked-based instruments were introduced to meet and diminish environmental problems before they occurred (Carter, 2007; Shaffer, 2001; Hajer, 1995).

These environmental policy interventions, e.g. bans on specific chemical substances or taxes for production-related emission, with their prevention-oriented values served as a prerequisite for the further and later development of eco-labelling schemes. With the purpose of harnessing current market forces by providing product information to empower consumers towards sustainable consumption and thereby alter the mode of production into a more environmentally benign manner, eco-labelling schemes address environmental protection and improvement as market friction-based² and consumer- oriented voluntary environmental product measurements. In other words, eco-labelling schemes provide product information to aggregate consumer power, to steer businesses towards more a sustainable production (Boström & Klintman, 2008; Carter, 2007;

Salzman, 1999).

1 The term “advanced industrialized democratic states” refers to the definition “advanced industrially state” by the World Bank. This includes all developed countries with a large degree on GPD which are also referred to as the north (World Bank, 2015) In that time period, the advanced industrialized states with a democratic system have for instance been covered by the US, Germany etc.

2 Among other policy instruments are eco-labelling schemes by EU definition regarded as market friction-based, policy as they “pursue the goal of stimulating a market to produce a desired resource efficient our environmental outcome by improving information flows” (Rademaekers, 2011: 43).

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Chapter 1 Introduction • 11

Since the first eco-label, “The Blue Angel“, was introduced in Germany 1978, dozens of national and international eco-labelling schemes have been developed and implemented.

According to the eco-labelling catalogue “Ecolabel Index”, 458 eco-Labels currently exist in 197 countries, covering 25 industry sectors (Global Ecolabel Monitor, 2015). Through the integration of social merits, such as a minimum wages, the term sustainable-labelling schemes was developed. However, sustainable-labelling schemes still mainly address environmental issues and are thus still mostly discussed as eco-labelling schemes (Golden et al., 2010).

Besides the growing of the number of different eco-labelling schemes, the “State of Sustainability Initiatives Review 2014” (Potts et al., 2014) demonstrates an increasing market value and stated a double and triple-digit growth rate across the sixteen most prevalent eco-labelling schemes. The study documents the trend of sustainable commitments by big polluters such as large manufacturers and corporations including Dole, Chiquita, Coca Cola Company, Tetley, Twinings, Unilever, Hershey’s, Home Depot, Lowes, Starbucks, Nestlé, Ferrero Group, Mars, Ikea, Adidas and others. Similar results of eco-labelling schemes’ growing market share and large companies’ sustainable commitments, have been examined in other studies (Global Ecolabel Monitor, 2010; Golden et al., 2010).

However, it is mainly the small and medium sized enterprises (SMEs)³, representing more than 99% of all enterprises operating throughout the EU, which have historically not been the focus of environmental measurements, but are likewise identified and regarded as significant contributors to environmental problems. Even if each individual SME has merely a minor environmental impact in contrast to the big polluters of larger corporations, they are considered to have a substantial environmental impact, due to their vast number (OECD, 2010; Stubblefield et al., 2010; Labonne, 2006).

“The prospects and strategies for a green growth economy cannot be entirely un- derstood without taking fully into account the production, technology and man- agement practices of small and medium sized enterprises (SMEs)” (OECD, 2010: 3)�

1.2 RESEARCH PROBLEM AND OBJECTIVE

If the transformation of SMEs to sustainable practices, in manufacturing, processing and services, is declared to be the key to a green growth model, in what way can eco-labelling be a part of that? The number of eco-labelling implementation by big polluters is increasing, which is regarded as fostering more environmentally benign consumption and production. In that sense, are present-day eco-labelling schemes also an option for supporting the greening of SMEs productivity and can they been seen as an established

3 The definition of micro, small and medium-sized enterprise (SME) is based on the EU Commission’s SME criteria, which regards SMEs as “enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro”

(COM/2007/0379 final).

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perspective for this task? Which strategies do contemporary eco-labelling schemes imply in terms of greening SMEs production and fostering sustainable production and consumption, and are they capable or effective enough to improve the environmental performance of SME products or do they need to be complemented by other existing policy interventions? In order to approach to this complex issue, the thesis aims to identify whether or to what extent eco-labelling schemes are suitable for attaining the goal of greening SMEs production and thus focuses on the greening potential and limits of contemporary eco-labelling schemes for SME products within the EU.

In order to meet the requirements of my research objective within the parameters of the thesis, I am going to focus on German SMEs within the processing-coffee sector.

Hereafter, the objective of this thesis is to explore the greening potentials and limits of current eco-labelling schemes in regards to German coffee-processing SMEs (GCPS).

1.3 RESEARCH SCOPE AND LIMITS

What is the German coffee-processing sector offering as a research framework in relation to eco-labelling schemes and SMEs? Since several years, coffee has been ranked as the second most traded commodity after crude oil and is still one of the world’s most valued agriculture commodity product. Therefore, its importance to the world’s economy and for providing livelihood for over 125 million people cannot be overstated (ICO, 2014;

Panhuysen & Pierrot, 2014; Trade Economics, 2015). In 2008, coffee ranked as the top- most eco (fair trade) labelled commodity product and about 52% was also certified as organic (Pay, 2009).

Accounting for 31% of worldwide coffee consumption, the EU is by far the world’s largest coffee consumer, compared to the US with 17% and 6% for Japan. Germany is the largest coffee drinking nation (Pay, 2009). At the same time, Germany is also the biggest coffee- importing country in terms of volume within the EU. Beyond being an important import country, Germany is also the largest coffee-processing nation within the EU (Preibisch, 2012). There are a total of approximately 600 coffee-processing companies in Germany and it is estimated that around 590 thereof are small or medium-sized companies (KL, 2015). Eco-labelled German processed coffee is rather rare. The market share in Germany of imported eco-labelled green coffee beans amounts to about 5%, but it is regarded as market niche with a growth potential, due to an increasing consumer demand for certificated coffee (Preibisch, 2012; Pierrot, 2011; Pay, 2009).

Against this background, the status and amount of coffee trade and consumption in the global commodity market highlights the relevance of producing coffee sustainable.

Germany’s strong coffee industry and large coffee-drinking culture stresses the vast significance of the coffee-processing sector. Due to their large presence in this sector, German coffee-processing SMEs (GCPS) gain importance in this regard. A minor share

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of eco-labelled coffee products in Germany on the one hand and an increasing consumer demand of German eco-labelled coffee on the other, demonstrates an unexploited greening potential for eco-labelled certified coffee products. In this respect, the thesis regards a research scope limited to eco-labelling schemes in regards to GCPS as appropriate and meaningful for identifying the greening potential and limits of SME products by eco-labelling schemes.

Due to that, the scope of this thesis is restricted to coffee eco-labelling schemes of positive voluntarily ISO Type I and ISO Type I-like environmental policy instruments in Germany, which are explicitly defined in section 1.5.

1.4 RESEARCH PURPOSE

To this end, this thesis has an overall aim to firstly contribute to approaching eco-labelling schemes as being related to environmental benefits and thus as environmental policy instruments improving environmental performance and conditions.

Secondly, the focus on eco-labelling schemes in relation to German coffee-processing SMEs (GCPS) within the coffee sector seems to be an appropriate and expedient framework for exploring and reflecting upon the impact and possibility of eco-labelling schemes as a strategy for greening SME products. Based on explorative research the study seeks to provide a deeper understanding of the implementation of eco-labelling schemes for coffee products from its normative theoretical conception to a detected logic/rationality in practice. Thus, the thesis aims to understand how the schemes’ underlying theoretical greening strategy correlates in practice of German coffee-processing SMEs (GCPS). In this sense, the overall goal is to gain an insight of qualitative nature about eco-labelling schemes’ implementation strategy, thereby fostering a learning process and serving to optimize eco-labelling schemes’ rationality. Therefore, the thesis attempts to grasp and explore existing implementation shortcomings or positive outcomes in relation to GCPS products in order to evaluate eco-labelling schemes’ greening potential and limits.

In the main part of the thesis, a policy evaluation will reveal the intended and unintended effects of coffee eco-labelling schemes’ policy intervention - from benefits till constraints - in the perspective of GCPS. It thus provides information on how eco-labelling schemes are actually implemented and perceived to function in the eyes of GCPS and reveals how eco-labelling schemes meet and affect GCPS products with respect to whether or to what extent the initiated and intended policy goals of eco-labelling schemes are attained. At the same time, the policy evaluation will expose which anticipated and un-anticipated side-effects have occurred in the process of accomplishing the eco-labelling schemes’

policy goals and which might have produced counterproductive impacts.

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In return, the thesis has the intention of generating a hypothetical insight that firstly grasps coffee eco-labelling schemes’ actual impact on greening GCPS products. Secondly, the thesis aims to compare and analyse these results further against the backdrop of eco-labelling schemes’ normative theoretical conception in order to clarify their scope of limits and potential to green German SME coffee products and gain thereby knowledge to enhance the policy rationalization of eco-labelling schemes. The thesis applies therefore eco-labelling policy conceptions and draws on theoretical approaches of the Ecological Modernization Theory (EMT).

To explore eco-labelling’s greening potential and limits for German SME coffee products my overarching research question is therefore as follows:

• What are the motivating factors and benefits as well as barriers and shortcomings of existing eco-labelling schemes experienced by GCPS?

To answer the question above, the study will investigate the following central research questions on a base of explorative research:

• What are the actual intended policy implementation/intervention goals of coffee eco-labelling schemes and how do German SMEs in the coffee-processing sector correspond to them?

• Are these intended policy goals achieved by German SMEs in the coffee- processing sector?

• What anticipated side-effects as well as un-anticipated side-effects are experienced by GCPS in regards to accomplishing the intended endeav- ours and achievements of eco-labelling schemes?

1.5 DEFINING ECO-LABELLING SCHEMES FOR THE GERMAN

COFFEE SECTOR

To start with, eco-labelling schemes, also called non-legally binding voluntary environmental product information schemes (EPIS), are considered to interlink economic and social forces by awarding and indicating products with environmental information, in contrast to similar products with the same functionality and within the same competitive sector. Based on the notion, that a certain segment of consumers consider environmental quality as a purchase selection criterion, eco-labels are seen as crucial for favouring consumers’ purchase choice towards products of a more environmentally benign manner.

With this transformation towards a greener demand on the market, eco-labels are seen as an informative voluntary market-friction instrument with the objective of continuously

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improving products’ environmental performance and thereby reducing environmental degradation (Rademaekers, 2011; Salzman, 1991).

The products’ environmental information can be supplied in different manners, either promoting the positive effects toward the environment or warning about the product’s negative impacts. In this regard, notion of this information being voluntarily or mandatory differs. Furthermore, the environmental product information can refer to a national, supra- national or global scope and may cover multiple or single criteria area etc. (Rubik & Frankl, 2005). The different classification of eco-labelling schemes are illustrated by Figure 1:

Figure 1. Classification of EPIS within the European Union (Source: Rubik & Frankl, 2005: 34).

Due to the thesis’s research purpose the focus solely be on positive, voluntary eco- labelling product schemes, which are valid for the coffee sector in the EU and Germany.

This selection is further reduced by the definition of the International Organisation for Standardization (ISO). With respect to the ISO taxonomy of eco-labelling schemes, the research deals only with all German coffee-related "ISO Type I environmental labelling”

(14024:1999). This restriction is based on the opinion by ISO and the UN that merely products certificated by ISO Type I or Type I-like are capable of promoting and altering a greening of the market, which is in line with the thesis’ assumption to approach eco- labelling schemes as being related to environmental benefits. The UN has even stated that only ISO Type I or Type I-like schemes should be declared eco-labelling schemes (ISO, 2012; UNOPS, 2009).

Following the ISO definition, ISO “Type I environmental labelling” implies a:

“ [V]oluntary, multiple-criteria-based third party program that awards a li- cense which authorizes the use of environmental labels on products indicating overall environmental preferability of a product within a particular product category based on life cycle considerations" (ISO 14024:1999)�

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In other words, these kinds of eco-labelling schemes are meant to cover a multiple- criteria area and are based on a governmental agency, a quasi-governmental body, or a private organisational entity and are therefore awarded from a source independent of the eco-label certified producer, distributor or seller. The ISO taxonomy further distinguishes between “Type I” and “Type I -like environmental labelling”, whereby the latter might only address specific sustainable impacts (e.g. water quality, labour conditions) and/or focus only within a specific sector (e.g. forest industry, commodity sector) and/

or refers just to single life cycle phases (e.g product production; product recycling). In this case eco-labelling schemes have a more narrow focus and are seen as "hybrids" or

“alternatives”, as they differ, though still comply with the major elements of the ISO Type I scheme definition. (UNOPS, 2009; Rubik & Frankl, 2005).

The ISO taxonomy of eco-labelling schemes also implies two further standardizations, which characterize eco-labelling schemes as “Type II self-declared environmental claims (ISO 14021: 1999)”, and “Type III environmental product declarations (ISO 14025:2006)”.

These will be not explained here in detail, but in order to gain a complete picture of all current coffee eco-labelling schemes within Germany, Figure 2 provides an overview with respect to the ISO taxonomy⁴.

Figure 2. Voluntary Eco-Labelling Coffee Product Schemes in Germany.

4 The EU Organic label covers a wide range of food categories (and not on single food issues) and a broad range of sustainable impact categories (including ethical issues). Further the EU Organic label considers more than just the agricultural stage of the product lifecycle (Sengstschmid et al., 2011). In this sense the EU Organic label can be regarded as complimentary to the ISO Type I EU Eco-label scheme “EU-Flower” which has developed criteria for products solely in the non-food sector. Therefore, the thesis puts the EU Organic label here on equal footing with the ISO Type I definition and distinguishes it from the other relevant three coffee eco-labelling schemes, which are limited to certain food areas and sustainable issues.

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Figure 2 demonstrates that “ISO Type II environmental declarations”, for instance, exist in Germany through Nestlé’s (AAA) and Starbucks’ (C.A.F.E.) own declaration. There are also further alternative options of “Type III environmental product declarations”

in the German coffee sector. Against this background, Figure 2 also clearly illustrates that the research objective of eco-labelling schemes within the German coffee sector is limited to the public Type I scheme by the EU Organic label and the private Type I-like schemes covered by Fairtrade, UTZ and Rainforest Alliance. For the study’s purpose of conducting a policy evaluation, these governmental and private voluntary Type I and Type I-like eco-labelling schemes are unified and defined under the umbrella of voluntary consumer-oriented and market friction-based environmental policy instruments.

For the study’s purpose of conducting a policy evaluation, these governmental and private voluntary Type I and Type I-like eco-labelling schemes are unified and defined under the umbrella of voluntary consumer-oriented and market friction-based environmental policy instruments.⁵ Since eco-labelling schemes primarily provide consumer information, they could also be regarded as solely voluntary information instruments. However, in notion to Boström and Klintman (2008), the EC Directorate-General Environment (Rademaekers, 2011) and the OECD (Salzman, 1991), their function is not to merely provide information, but rather to strive toward harnessing and improving the current market forces in regards to sustainable consumption, thereby altering the mode of production toward a more environmentally benign manner.⁶

“Widely recognised and supported eco-labels may influence producers in a similar manner to traditional regulatory standards (especially if they stipulate the BAT⁷ principle) in markets where green consumerism is very strong”

(Jordan et al�, 2003: 11)�

A low degree of public environmental awareness has the opposite effect. This being said, it should be noted that the effect of eco-labelling schemes in relation to consumer awareness is not the object of this thesis. Moreover, following the stated numbers of the “State of Sustainability Initiatives Review 2014” (Potts et al., 2014), which claims an increasing eco-labelling market share growth, the thesis assumes that sustainable consumerism is growing to a similar degree.

Further, to access eco-labelling schemes in the means of environmental policy, eco-labelling schemes of public Type I and private Type I-like mentioned in this thesis are both approached by Lundqvist’s (1996) purpose-based view on environmental policy

5 Due to the high attention on environmental issues of these labelling schemes, this paper will refer to them in the following solely by the term eco-labelling scheme. In some cases, the paper distinguishes more clearly between ISO Type I and Type I-like eco-labelling schemes, though the term eco-labelling scheme or other descriptions as Type I schemes etc. imply also the full ISO definition of governmental and private voluntary positive multiple Type I and Type I-like eco-labelling schemes.

6 The normative logic beyond eco-labelling schemes as a consumer-oriented and market-friction based instrument is further discussed and outlined in chapter 4.

7 BAT = best available technology.

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instruments. According to Lundqvist, these are “courses of action which are intended to affect society – in terms of values and beliefs, action and organisations – in such way as to improve or to prevent the deterioration of the quality of the natural environment”

(Lundqvist, 1996: 14). From this perspective, eco-labelling schemes with a different institutional characteristic (private and public) and the characteristic of functioning as a sermon⁸, with the aim of creating and providing a “carrot”⁹ for realising environmental policy goals, can be still considered environmental policy instruments.

In the following, a method for approaching the pre-assigned eco-labelling schemes’

impact of their policy implementation in practice will be introduced, thus demonstrat- ing how the thesis will elucidate eco-labelling schemes’ policy conception from the observational perspective of coffee-processing SME in Germany.

8 In notion to Vedung’s (1998) debate on taxonomy of public policy.

9 In notion to Vedung’s (1998) debate on taxonomy of public policy.

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Chapter 2 Research Method and Methodology • 19

CHAPTER 2 RESEARCH METHOD AND METHODOLOGY

To understand how Fairtrade and other voluntarily informative environmental product policy instruments currently correspond in practice to German coffee-processing SMEs (GCPS) and in order to assess their capability to green those SMEs, this thesis will conduct a policy evaluation of coffee eco-labelling schemes. Several methodical approaches of environmental policy evaluation have been developed, which imply different research designs and elaborations of methods. Conceptions of environmental policy evaluation are mostly applied to measure a policy’s possible impact on environmental objectives or their effectiveness in meeting environmental objectives (Mickewitz, 2006). However, in this thesis, the intervention and implementation of coffee eco-labelling schemes are evaluated by an inductive approach, in order to understand how they are meeting and affecting GCPS in place.

In order to achieve this step, answer the research questions at hand and cover all intended or unintended outcomes in regard to the policy intervention of eco-labelling schemes in the context of GCPS, the thesis addresses the policy evaluation from a rational perspective. This evaluation perspective enables a focus both on policy’s problem-solving process and on its implementation cycle. In order to evaluate coffee eco-labelling schemes from a rational perspective, the thesis chooses to apply the evaluation method of “program theory evaluation”. However, it will not evaluate the entire policy implementation cycle of coffee eco-labelling schemes, but will rather elaborate and zoom onto one part of the

“chain of [policy] objectives” (Suchman cited in Crabbé & Leory, 2008: 54), which consists namely of the implementation outcomes regarding GCPS.

2.1 METHODOLOGY

On the base of the method “program theory evaluation” (PTE), the thesis will organise and analyse the experience of GCPS so as to render them comprehensible and explain- able. Thus, the thesis’s ontological position is based on semiotic sense making about the worth, merit and value¹ of coffee eco-labelling schemes in Germany. In other words, the thesis acquires comprehension about the perception that GCPS have on the eco-labelling schemes policy, which is not rendering an objective of a truth and is thereby clearly assigned to a constructivist evaluation approach.

1 This will be more in detailed explained in section 2.2.2 of this chapter.

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For a more precise understanding, this means in detail that the thesis meets the “a priori”

considered reality as constructed through thoughts, language and social performance.

The existence of an objective reality is therefore not denied. The reality and the world is out there, but its truth cannot exist independently of the human mind as descriptions of the world are not out there: “The understanding does not draw its laws (a priori) from nature, but prescribes them from nature” (Kant cited in Cohen, 1985: 32). By assessing the phenomena of coffee eco-labelling schemes from this constructivist ontological view, the thesis clearly stands in contrast to the ontological belief of a real physical truth of the world, which is thought to be objective accessible and can be derived from real knowledge.

2.2 PROGRAM THEORY EVALUATION

²

Regarding the thesis’s aim to evaluate the eco-labelling schemes implementation effects on GCPS, the assessment of coffee eco-labelling schemes is addressed by a rational perspective of policy evaluation, which determines the basic framework for the choice of the “program theory evaluation” (PTE) method. Environmental policy evaluation can be appointed to three different types of policy evaluation perspectives and their functionality, however, it is the rational perspective that addresses a policy as a problem-solving process and focuses on the policy’s implementation cycle. One can further distinguish between an interaction perspective and an institutional evaluation perspective of policy evaluation. Whereas the former regards policies as a product of interaction among different interrelated stakeholders and evaluates the decision-making process, the latter frames policies within the broader picture of institutions and concentrates on the policies institutional context (Crabbé & Leroy, 2008).

Within the chosen rational evaluation perspective, policies are considered to imply and follow the logic of a goal-set agenda, which address a certain problem-defined target.

Thus, a rational policy evaluation has the intention to assess “whether, or to what extent the initial problem has been resolved [through the policy implementation], and whether or not the policy cycle must be reiterated“ (Crabbé & Leroy, 2008: 9).

A policy evaluation from a rational perspective is thus regarded as a process of learning, therefore contributing to an understanding of how to optimize the rationalising of the policy. “In this view, policy is like a control loop” (Crabbé & Leroy, 2008: 9). Whereas the method of “program theory evaluation (PTE)” does not intend to describe how the implementation of a policy is actually occurring, which would cover negotiations and

2 The method “Program theory evaluation” (PTE) is discussed to be a broader term for all various existing forms of PTE, which differ clearly from each other. However, the different PTE labels as public intervention theory (Vedung, 1997: 10) theory based evaluation (Weiss cited in Rogers et al, 2000:6), policy theory evaluation (Crabbé

& Leroy, 2008: 53) etc. have not yet been applied consistently to a certain method conception and are therefore practically synonymous with PTE (Rogers et al., 2000). Thus, authors applied in this thesis might term the method differently.

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decision-making processes, it instead explicitly serves as a tool to assess the actual policy implementation and its effects in practice, thereby supporting the process of learning and understanding, and thus providing an evaluation of eco-labelling schemes from a rational perspective.

In general, the policy evaluation method PTE is rooted in the idea of first reconstructing a public policy normative causal “chain of [policy] objectives” (Suchman cited in Crabbé

& Leroy, 2008: 54) and on that basis, evaluating the policy instrument in the sense of understanding what happened along its chain elements. This implies generating a model of all the chain structures between the starting point of the policy’s expectation and formulation up to its implementation and series of immediate and intermediate outcomes, until its final goal. In other words, “[p]rogram theory evaluation consists of an explicit theory or model of how the program [policy] causes the intended or observed outcomes and an evaluation that is at least partly guided by this model” (Rogers et al., 2000: 5).

Thus, PTE is a method for building a conceivable and reasonable model of public policy instruments in a twofold manner. On the one hand, it has a normative component focusing on how a public policy intervention is supposed to function. On the other, it has an empirical component focusing on how a public policy implementation (can) causes intended or unintended outcomes. PTE “involved the development of an explanatory model which is used as a basis for policy evaluation [and] encompasses the beliefs and expectations of the policy-makers with regard to the [actual] course of policy” (Crabbé & Leroy, 2008: 53).

In this sense, PTE should be considered a policy model “of the micro-steps or linkage in the causal path from [policy] program to ultimate outcome” (Rogers et al., 2000: 10), which is derived from and established on the basis of the policy’s intended implementation and function. Through the application of the model, one reveals how the policy is actually implemented and how it is perceived to function, which is in line with the aim of this thesis, namely to provide information on how the implementation and function of coffee eco-labelling schemes is observed and perceived by GCPS. This also implies that a model of “program evaluation theories” serves as a way to learn about the practical mechanisms and outcomes of a policy in order to reformulate policies and improve their implementation processes or other activities that might need improvement. Thus, the evaluating of coffee eco-labelling schemes in relation to GCPS will also serve to share general knowledge about and to develop contemporary (coffee) eco-labelling schemes as well as to generate general knowledge for future research on (coffee) eco-labelling schemes in other product sectors within the EU.

“The opportunities to learn from evaluations are numerous� Those participat- ing in the political process through which policies are formed can learn, like- wise those implementing the policies� Evaluation may provide opportunities to learn about the question to ask, the goals to set and how to frame the issue as well as the instrumental learning about how to design or implement policy”

(Mickwitz, 2006: 18)�

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Input Conversion Output

2.2.1 Program Theory Evaluation in practice

This thesis will primarily apply PTE in the notion of Vedung’ s (1997) review of ideas behind public policy and program evaluation and his primarily conception beyond PTE’s function, which reflects the thesis constructivist approach:

“This model is a tool which may generate questions about reality; it does not picture reality” (Vedung & Román, 2002: 10)�

The simplest model for reconstructing and outlining a “chain of [policy] objectives”

(Suchman quoted in Crabbé & Leory, 2008: 54) is rooted in the idea of rendering public policy implementation within a basic system. This relies on a whole chain of elements, which depend on each other and are basically solely consisting of input, conversion and output, as illustrated in Figure 3.

Figure 3. The Simple System Model (Vedung, 1997: 4).

Applied as a model for policy evaluation, Vedung (1997) changes the terminology and refers to “administration” instead of conversion. Thus, conversion happens within the policy’s respective responsible agency and is triggered by the input. In the case of this thesis, the output would be the environmental policy instrument of coffee eco-labelling schemes.

Figure 4. The System Model Adapted to Government Intervention Evaluation (Vedung, 1997: 5)

In a second step, as the illustration (Figure 4) above shows, Vedung extended the policy evaluation model’s output phase by introducing further variables of outcomes, which refer to the results when the output (eco-labelling schemes) reach the receivers or ad- dressees. These different phases of outcomes are distinguished by immediate = Outcome 1, intermediate = Outcome 2, and ultimate = Outcome 3. The latter is presented in this study as final policy goal.

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To apply this basic model and conduct a policy evaluation, the first step is, as discussed before, to outline and construct a normative “program theory evaluation” model (PTE- model)³ of coffee eco-labelling schemes in the German coffee sector. The fundamental data and knowledge for the modelling in this case is derived from secondary sources, which frame eco-labelling schemes’ rationality roughly, but is mainly outlined through an inductive approach via the application of official policy documents of eco-labelling bodies.

Thus, the outline of a normative PTE-model follows the initial logic beyond a policy and thus constructs a normative cycle of all considered elements of a policy chain striving for the coffee eco-labelling schemes’ goal-set agenda. Due to the thesis’s purpose, the policy model will focus on elements of the policy chain’s outcome phase and will outline these parts more in detail. In this case, the final goal of coffee eco-labelling schemes is the greening of German SME coffee products and thus their ‘contribution to a sustainable consumption and production’.

This is first caused by outcome 1= ‘the implementation (introduction and application) of eco-labelling schemes’ which leads to outcome 2= ‘the increase of environmentally benign products’. However, Mickwitz (2006) suggests that the application of program theory evaluation should rather be based on multiple models, as there might be different expectations regarding the course of policy intervention and thus the chain of objectives.

“Constructing multiple intervention theories, which make different assumption on causalities explicit, can foster learning even on its own before any of the assumption of the intervention theories are empirically examined”

(Mickwitz, 2006: 35)�

Figure 5 below illustrates a normative multiple PTE-model of the eco-labelling schemes’ implementation in relation to GCPS. This model is only based and constructed on the data and knowledge of eco-labelling schemes in chapter 1, which does not explore the complete policy rationality of eco-labelling schemes in detail. Regarding its shallow and general understanding of eco-labelling’s policy strategy, it can only be comprehended as an exemplary normative model to make the method more accessible. However, in that sense, it also serves as a blue- print for constructing the normative PTE-model of coffee eco-labelling schemes.

3 In the following, the term “program theory evaluation model” will be supplemented by the abbreviation “PTE- model” or the term policy model.

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Figure 5. Multiple PTE of the eco-labelling schemes in relation to German coffee-processing SMEs (Source: adapted from Figure 4).

Regarding the PTE method, the second step will be to conduct an evaluation by weighting and valuing the empirical data collection against the normative intended implementation outcomes of the normative PTE-model. This implies establishing an evaluation of gathered data and knowledge that displays how the application and function of coffee eco-labelling schemes is observed and perceived by GPCS. Though, before this second step of evaluation can be realized, there are further requirements that have to first be addressed by applying the method PTE.

2.2.2 The Means Behind Evaluating

As stated above, the second step of a PTE method is to use the constructed normative PTE-model. In this process, it is necessary to clarify what it means to conduct an evaluation. An evaluation is defined as follows:

“[C]areful retrospective assessment of the merit, worth and value of adminis- tration, output and outcome of government interventions, which is intended to play a role in future, practical action situations” (Vedung, 1997: 3)�

In this notion, evaluation is an analytical process limited to ex-post assessments of governmental public policy, which are “a set of techniques by which public sector au- thorities wield their power in attempting to effect social change or eliciting support”

(Vedung 1997: 122). In this study, the definition and application of evaluation is based on Vedung’s concept.

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Due to the thesis’s scope, the variables are limited to output and outcome. Further his conception is extended to include eco-labelling schemes and tailored by Lundqvist’s purposed-based approach for environmental policy instruments. Therefore, the evaluation of coffee eco-labelling schemes within this thesis refers to a:

“careful retrospective assessment of the merit, worth and value of output and outcome of consumer-oriented and market friction based courses of action which are intended to affect society in such way as to improve or to prevent the deterioration of the quality of the natural environment”

(applied quote by Vedung, 1997: 3 and Lundqvist, 1996: 14)�

2.2.3 Merit, Worth and Value

Beyond determining the general inherent direction and purpose of evaluation in order to later focus on coffee eco-labelling schemes policy element of GCPS, it also has to be clarified what principle (“the merit, worth and value” (Vedung, 1997: 2)) the assessment is based on. Throughout the history of policy evaluation, three fundamental sets of evaluation criteria have emerged: the judicial rational, the economic rational and the political rational. Recently, the United Nations established eight evaluation criteria of

“Good Governance”, which sum up the former three fundamental sets (Crabbé & Leory, 2008). All of these eight evaluation criteria are equally valid and can be applied for evaluation research using the PTE method. Regarding to the official criteria of Good Public Governance by the UN, the policy evaluation’s merit, value and worth can be chosen and determined by following different principles of:

Figure 6. The principles of Good Governance (adapted from Crabbé & Leory, 2008: 27).

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Within these principles of “Good Governance”, the merit, worth and value of coffee eco-labelling schemes’ policy evaluation can range from proofing their practical accountability to promoting their legitimacy. Regarding the former, an evaluation could measure if eco-labelling schemes are transparent and traceable in meeting their goal of contributing to sustainable growth, or, following the latter, could ensure that certified producers fulfil their obligations. However, this study focuses on evaluating eco-labelling scheme implementation through the lens of effectiveness.

Although effectiveness and efficiency are often seen as synonymous, the application of the criterion “effectiveness” does not take any economic aspects into account (Vedung, 1997). Effectiveness relates to the achievement of the eco-labelling schemes’ intended and set policy goal of contributing to sustainability by greening GCPS products. But, as stated before, without having the intention to measure its environmental performance, the criterion effectiveness is used here with the sole purpose of understanding to what extent the eco-labelling scheme intervention is corresponding with its intended goal-set agenda in regards to GCPS. In this sense, the evaluation criterion effectiveness serves to frame the actual outcomes and side effects of eco-labelling scheme interventions from the perspective of GCPS. This also holds for all counterproductive impacts which coffee eco-labelling schemes might produce along their intended goal-set agenda. All in all, the criterion effectiveness is applicable for the assessment of the efficiency of eco-labelling schemes with the goal of greening GCPS products.

To approach the eco-labelling schemes intervention by way of “effectiveness”, two effectiveness evaluation models will be applied. Thus, based on an outlined normative PTE-model, which reflects coffee eco-labelling schemes’ intended implementation goals, these effectiveness evaluation models can be considered as tools for supporting and guiding policy evaluation in the sense of effectiveness. Both of these define the term effectiveness within the frame of goal achievement, but differ slightly. For a better understanding of the thesis’s further methodical approach, both evaluations’ effectiveness models are described in the following.

2.2.4 Goal-Attainment Evaluation

‘Goal-Attainment Evaluation’ analyses policy implementation by asking if the outcomes are in line with the intended goals and if the produced outcomes are a result of the impact of the policy. The latter is termed ‘impact assessment’ and the former

‘goal achievement measurement’. Both evaluations require that the policy has already been adopted for a prolonged period, in order to achieve appropriate results concerning the implementation (Vedung, 1997). This requirement does not pose a problem in the context of this thesis.

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According to the thesis’s evaluation, coffee eco-labelling schemes goals have to be identified and ordered by their rank and meaning in order to evaluate in what sense and to what extent these goals have been realized and achieved. Thus, a ‘Goal-Attainment Evaluation’ would entail here, for instance, an analysis whether GCPS have sustainable coffee products and if this actual outcome can be observed, see in a second step, if their sustainable value is attributed to the implementation of eco-labelling schemes. The evaluation is based on a descriptive analytical valuing process, which will be carried out by comparing and weighting the empirical gathered data and knowledge of GCPS to the underlying policy goals of the relevant coffee eco-labelling schemes, which are derived from the normative PTE model.

Figure 7. Goal-Attainment Evaluation Model (adapted from Vedung 1997: 39).

This implies that eco-labelling schemes’ content, as a result of democratic decision- making process and within a descriptive analytical valuing process, is compared and weighted “from the frog eye perspective of the citizenry” (Vedung, 1997: 42), which in this case are the GCPS stakeholders. While this takes into account a policy’s inherent value of representative democracy and it thus demonstrates the evaluation model’s strength.

Though, the goal-attainment evaluation has also weaknesses, which the most compelling one will be discussed here. By assessing a lack of accomplished goals, the probability of unintended and unanticipated side-effects, for instance, missing time or high costs of implementing a policy as well as weak human performance or human error are often disregarded. According to this, inappropriate implementation results may not be the only reason for a sloppy or excluding policy formulation. But as environmental policy instruments are applied in a changing and complex context, they are exposed to external unforeseeable factors and interactions (Vedung, 1997). Against this background, the thesis will, in the following, introduce the second evaluation model, the ‘Side-Effect Evaluation’, with the intent of diminishing the weaknesses of the ‘Goal-Attainment Evaluation Model’.

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2.2.5 Side-Effect Evaluation

‘Side-Effect Evaluation’ elaborates on ‘Goal-Attainment Evaluation’ by making room to include factors occurring outside the intended policy target area. These outside factors act, in the best case, as complementary side effects to accomplish the policy’s intended endeavour and achievements. Anyhow, a policy implementation can also produce detrimental impacts. Whether positive or negative, Vedung distinguishes between side effects located within or outside of the policy target area. With regard to this, any positive or negative additional effect outside of the policy target area is considered as an unanticipated side effect. These unanticipated side effects can only be identified as such in relation to the main effects. Main effects are regarded as all side effects which political decision-maker intended and thought to induce within the target area of the policy intervention.

Figure 8. Side-Effect Evaluation Model (adapted from Vedung, 1997: 58).

Thus, main effects are by definition positively anticipated and are therefore all beneficial for achieving the policy’s intended goal. At the same time, a policy implementation can produce detrimental impacts, which act contrary to the policy’s functionality. When these counterproductive side effects are occurring within the policy target area, Vedung refers to so-called perverse effects. As completely counterproductive consequences, they negate all initially positive anticipated side-effects, act contrary to the policy’s target area and thus question a policy’s implementation and cause of problem-solving in total.

Thus, perverse effects need to be factored in beforehand to diminish and eliminate their impact and are therefore defined as anticipated negative side effects. Simultaneously, policy intervention might also have null effects, which speaks for itself (Vedung, 1997).

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To evaluate anticipated side-effects, Vedung suggests mapping the outcomes by comparing their congruency with the intended results in the policy target area and further weighting their positive or negative trade-off in order to identify their beneficial or detrimental value. In this way, anticipated side effects within the present outcome, both beneficial and detrimental (perverse-effect), have to be evaluated in relation to the predetermined goals by way of a descriptive analytical valuing process of the gained empirical data. In this study, the data will be obtained from stakeholders of GCPS. As stated before, the unanticipated side-effects can be framed and pictured in relation to all identified anticipated side-effects, though in order to value these as negative or positive unanticipated side effects, the descriptive analytical approach has to be open for the stakeholders’ own view of benefits or constraints. Since the unanticipated side effects are partially not foreseeable or known before an evaluation is conducted, they are of great importance and might serve as strong impetus and support through their unexpected insight for further reflection on policy’s performance (Vedung, 1997).

2.3 METHODS OF DATA COLLECTION

Due to the thesis’s purpose to explore and gain an in-depth understanding of coffee eco-labelling schemes in regards to German coffee-processing SMEs (GCPS), this thesis approaches its research questions by data of small N, which is based on qualitative empirical data collection.

Thus, the method ‘program theory evaluation (PTE)’ builds, on one hand, on qualitative data from primary and secondary sources to outline the normative policy model of coffee eco-labelling schemes and render its policy cycle with all relevant chains of objective and zooms onto its intended policy goal-setting. On the other hand, the evaluation applies qualitative data from primary sources in order to evaluate how the coffee eco-labelling schemes implementation accomplishes its goal-set agenda in relation to GCPS and further, what actual anticipated or un-anticipated effects are observed and perceived by GCPS and accomplish eco-labelling schemes interventions’ intended achievements or might produce counterproductive outcomes.

In terms of secondary sources, reference books, academic articles, literature review, scientific and institutional reports on eco-labelling schemes were applied. Primary sources are based on semi-structured interviews with stakeholders of GCPS, EU policy-documents concerning Integrated Product Policy (IPP) and official policy documents of the respective coffee eco-labelling schemes’ bodies (ISO Type I and Type I-like schemes).

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2.3.1 Secondary Sources

In order to gain a general overview on eco-labelling schemes as policy instruments, a small number of literature reviews, in contrast to the vast array of reference articles, were collected. The search on “Web of Science” and “Google” was guided by the following English keywords:

• eco-labelling scheme & coffee

• eco-labelling & SME / in EU

• eco-labelling & policy

Based on these findings, reference books, further official documents and scientific reports on eco-labelling schemes’ objective, typology, historical background, policy em- bedding and rationality as well as website sources like the German coffee association, International Standard Organisation, International Coffee Association, etc. were added.

This allowed narrowing down the general eco-labelling information to the coffee sector of eco-labelling schemes, but also helped in terms of gaining a broader understanding of SMEs in the German coffee sector. Secondary data for the rough modelling of a normative PTE-model was partially obtained from scientific reports and reference books on eco-labelling schemes (Boström & Klintman, 2008; Rademaekers, 2011; Salzman, 1991) as well as from former policy evaluation research on the eco-labelling scheme

“Swan” (Thidell, 2009). Regarding the modelling, all secondary data must be regarded as templates, which merely complemented and supported the primary data sources.

2.3.2 Primary Sources

For the construction of a normative PTE-model, the official policy documents of all four relevant eco-labelling schemes bodies⁴ were selected in order to detect their eco-labelling scheme’s rationality. Further, the Green Paper of Integrated Product Policy (IPP) and the Commissions Communication on IPP were also applied as they cover mainly voluntarily environmental product policy approaches like eco-labelling schemes and thus support the normative modelling of coffee eco-labelling schemes rationality from a wider governmental EU perspective.

There was an attempt to gather data and knowledge about coffee eco-labelling schemes rationality via interviews with representatives from each respective eco-labelling scheme’s institution or body. However, the majority of the requested representatives did not show interest or did not have time for a proper interview. Therefore, the secondary sources of eco-labelling schemes play a crucial role, as it is the combination of secondary and primary sources that support by the construction of a normative PTE-model to pre- clude that one eco-labelling approach gains a greater weight or that some chains of the objective are disregarded, etc.

4 FairTrade, UTZ, Rainforest Alliance and EU-organic label.

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In order to evaluate the coffee eco-labelling schemes from the perspective of GCPS and thus assess them by using a descriptive analytical valuing process, primary data is obtained by semi-structured interviews with representatives from respective GCPS. As there are about 590 German coffee-processing companies, the study needed to restrict this large number and set a constraining exploratory research frame. Due to this, just all size-relevant 19 members of the German Coffee Association were asked to participate in a semi-structured interview. Only five responded, even after a third round of contacting.

Thus, the data of primary sources of GCPS is limited to this number. The interviews were carried out during February and March 2015 and the questions were posed in German.

As no face-to-face meetings were possible, the interviews were conducted as similar as possible via a Skype Video conference and were recorded using the program Pamela.

2.3.3 Interview Design and Coding Scheme

The semi-structured interview was designed according to the Kvale & Brinkmann (2009) interview framework and an English version is attached in Appendix 1 of this thesis. To compensate for the lacking response from available GCPS interview partners, a broad array of interview questions were decided upon in order to achieve a large data input and were sent to the interviewees beforehand. Though, with the leeway of a semi-structured interview, there was the possibility to ask follow-up questions, which was relevant in the study’s case when there was need for room to explain complex and divergent issues.

Thus, semi-structured interviews were chosen mainly due to their flexible character, but also because of the small number of GCPS interviewees. On the one hand, a semi-structured interview allows validly acquiring data on each interviewee’s perspective, but leaves room for detailed explanations, impressions and observations. On the other hand, such an interview structure provides the access of relevant knowledge in order to gain an in-depth understanding of the issue, even with a small number of interview partners.

In contrast, a structured interview would not have been applicable, as the perception on coffee eco-labelling schemes’ effects are too multifaceted and complex to be quantifiable by coded answers.

The interviews started with warm-up questions to acquire general information about the GCPS’ business structure, coffee volume, etc. Further question served as information generators to identify the perception and impression of eco-labelling schemes’ intended goal-achievements and effects by asking about their implementation status and personal position towards coffee eco-labelling schemes application as well as about their obser- vation of coffee’s schemes sustainability. Depending on the GCPS business context (if eco-labelling schemes have been applied or not), the predetermined set of questions was phrased in a different way and was tailored to each interviewee’s business background.

During the interview, many follow-up questions were posed to the interviewees, due to the above discussed issues. Further, qualitative interview techniques such as the filler questions recommended by Williams (2003) were not used, though they were included in the interview design, in case the conversation did not flow.

Greening Potentials and Limits of Eco-Labelling Schemes in the EU