Toward the Construction of Sustainable Markets: A case study of third-party certifications in the local context of Kodagu, India

Abstract: Research in the field of global value chains (GVCs) has criticised the ability of third-party certifications (TPCs), such as eco-labelling, to substitute governmental regulation on social and environmental issues. Attention has turned to the globally standardised approach of TPCs, which is imposed on local cultures and values, without being sensitive to local specific conditions. As previous literature focuses on contexts suffering from unsustainable conditions, this article extends literature on TPCs by investigating the consequences of implementing TPCs in a local context that is already environmentally sustainable by default. Through a case study of coffee production in Kodagu district, India, a region known for its traditional knowledge and practices in environmental and biodiversity conservation, the empirical findings provide evidence of the shortcomings of implementing globally standardised TPCs in this specific region. By adapting a market construction perspective, the purpose of this article is to investigate in what way the context specific conditions in Kodagu affect the ways in which TPCs are shaping outcomes and practices in the local coffee value chain. The main contribution of the study is that the implementation of TPCs creates unexpected outcomes in Kodagu, rather than contributing to the conservation of environmental sustainability and biodiversity. Our conclusions suggest that TPCs in this specific context rather work in a counterproductive way, by giving room for coffee growers to lower their environmental performance, whilst still having the opportunity to receive a TPC. This contribution is essential to evaluate the potential of global TPCs and to critically assess their ability to contribute to the construction of sustainable markets.