IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22159.html
   My bibliography  Save this paper

Consumers' Willingness To Pay For Eco-Certified Wood Products

Author

Listed:
  • Jensen, Kimberly L.
  • Jakus, Paul M.

Abstract

We use Kriström's simple spike model to assess the factors influencing consumers' willingness to pay a premium for a variety of certified wood products. A survey of over 1600 Pennsylvania and Tennessee residents found that approximately 35% were willing to pay some positive "premium" for environmentally certified wood products. For three types of wood products (a $29 shelf, a $200 chair, and a $800 table) we find the estimated market premiums to be 12.9%, 8.5%, and 2.8%, respectively.

Suggested Citation

  • Jensen, Kimberly L. & Jakus, Paul M., 2003. "Consumers' Willingness To Pay For Eco-Certified Wood Products," 2003 Annual meeting, July 27-30, Montreal, Canada 22159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea03:22159
    DOI: 10.22004/ag.econ.22159
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22159/files/sp03je01.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.22159?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. R. K. Blamey & J. W. Bennett & M. D. Morrison, 1999. "Yea-Saying in Contingent Valuation Surveys," Land Economics, University of Wisconsin Press, vol. 75(1), pages 126-141.
    2. Kevin J. Boyle & Hugh F. MacDonald & Hsiang-tai Cheng & Daniel W. McCollum, 1998. "Bid Design and Yea Saying in Single-Bounded, Dichotomous-Choice Questions," Land Economics, University of Wisconsin Press, vol. 74(1), pages 49-64.
    3. Laura O. Taylor & Ronald G. Cummings, 1999. "Unbiased Value Estimates for Environmental Goods: A Cheap Talk Design for the Contingent Valuation Method," American Economic Review, American Economic Association, vol. 89(3), pages 649-665, June.
    4. Roger A. Sedjo & Stephen K. Swallow, 2002. "Voluntary Eco-Labeling and the Price Premium," Land Economics, University of Wisconsin Press, vol. 78(2), pages 272-284.
    5. Bengt Kriström, 1997. "Spike Models in Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1013-1023.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaung, Wanggi & Putzel, Louis & Bull, Gary Q. & Guariguata, Manuel R. & Sumaila, Ussif Rashid, 2016. "Estimating demand for certification of forest ecosystem services: A choice experiment with Forest Stewardship Council certificate holders," Ecosystem Services, Elsevier, vol. 22(PA), pages 193-201.
    2. Zanchini, Raffaele & Blanc, Simone & Pippinato, Liam & Poratelli, Francesca & Bruzzese, Stefano & Brun, Filippo, 2022. "Enhancing wood products through ENplus, FSC and PEFC certifications: Which attributes do consumers value the most?," Forest Policy and Economics, Elsevier, vol. 142(C).
    3. Abdolrazagh Madahi & Inda Sukati, 2016. "An Empirical Study of Malaysian Consumers’ Channel-switching Intention: Using theory of Planned Behaviour," Global Business Review, International Management Institute, vol. 17(3), pages 489-523, June.
    4. Abdu, Nizam & Tinch, Elena & Levitt, Clinton & Volker, Peter & Hatton MacDonald, Darla, 2022. "Willingness to pay for sustainable and legal firewood in Tasmania," Ecological Economics, Elsevier, vol. 195(C).
    5. Yen-Ting Lin & Haoying Sun & Shouqiang Wang, 2020. "Designing Sustainable Products Under Coproduction Technology," Manufacturing & Service Operations Management, INFORMS, vol. 22(6), pages 1181-1198, November.
    6. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    7. Tavárez, Héctor & Álamo, Carmen & Cortés,Mildred, 2020. "Differentiated coffees and their potential markets in Puerto Rico: An economic valuation approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 20(02), December.
    8. Paletto, Alessandro & Notaro, Sandra, 2018. "Secondary wood manufactures' willingness-to-pay for certified wood products in Italy," Forest Policy and Economics, Elsevier, vol. 92(C), pages 65-72.
    9. Nadia Palmieri & Alessandro Suardi & Luigi Pari, 2020. "Italian Consumers’ Willingness to Pay for Eucalyptus Firewood," Sustainability, MDPI, vol. 12(7), pages 1-14, March.
    10. Xiaogu Li & Christopher Clark & Kimberly Jensen & Steven Yen, 2014. "Will consumers follow climate leaders? The effect of manufacturer participation in a voluntary environmental program on consumer preferences," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 16(1), pages 69-87, January.
    11. Curtis, Kynda & Slocum, Susan, 2016. "The Potential Impacts of Green Certification Programs Focused on Food Waste Reduction on the Tourism Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(1), pages 1-6, March.
    12. Vásquez Lavin, Felipe & Barrientos, Manuel & Castillo, Álvaro & Herrera, Iván & Ponce Oliva, Roberto D., 2020. "Firewood certification programs: Key attributes and policy implications," Energy Policy, Elsevier, vol. 137(C).
    13. Higgins, Kieran & Hutchinson, W. George & Longo, Alberto, 2020. "Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    14. Nadia Palmieri & Alessandro Suardi & Francesco Latterini & Luigi Pari, 2020. "The Eucalyptus Firewood: Understanding Consumers’ Behaviour and Motivations," Agriculture, MDPI, vol. 10(11), pages 1-12, October.
    15. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas Jacquemet & Alexander James & Stéphane Luchini & Jason Shogren, 2011. "Social Psychology and Environmental Economics: A New Look at ex ante Corrections of Biased Preference Evaluation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 413-433, March.
    2. Fredrik Carlsson & Mitesh Kataria, 2008. "Assessing Management Options for Weed Control with Demanders and Non-Demanders in a Choice Experiment," Land Economics, University of Wisconsin Press, vol. 84(3), pages 517-528.
    3. Veisten, Knut, 2007. "Contingent valuation controversies: Philosophic debates about economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 204-232, April.
    4. Jill J. McCluskey & Kristine M. Grimsrud & Hiromi Ouchi & Thomas I. Wahl, 2005. "Bovine spongiform encephalopathy in Japan: consumers' food safety perceptions and willingness to pay for tested beef," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(2), pages 197-209, June.
    5. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    6. Dale Whittington & Stefano Pagiola, 2012. "Using Contingent Valuation in the Design of Payments for Environmental Services Mechanisms: A Review and Assessment," The World Bank Research Observer, World Bank, vol. 27(2), pages 261-287, August.
    7. Luchini, Stéphane & Watson, Verity, 2013. "Uncertainty and framing in a valuation task," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 204-214.
    8. Veisten, Knut, 2007. "Willingness to pay for eco-labelled wood furniture: Choice-based conjoint analysis versus open-ended contingent valuation," Journal of Forest Economics, Elsevier, vol. 13(1), pages 29-48, May.
    9. Peter Howley & Stephen Hynes & Cathal O’Donoghue, 2009. "Countryside Preferences: Exploring individuals’ WTP for the protection of traditional rural landscapes," Working Papers 0906, Rural Economy and Development Programme,Teagasc.
    10. Cai, Zhen & Aguilar, Francisco X., 2013. "Meta-analysis of consumer's willingness-to-pay premiums for certified wood products," Journal of Forest Economics, Elsevier, vol. 19(1), pages 15-31.
    11. Abou-Ali, Hala, 2003. "Using stated preference methods to evaluate the impact of water on health: the case of metropolitan Cairo," Working Papers in Economics 113, University of Gothenburg, Department of Economics.
    12. Alec Smith & B. Douglas Bernheim & Colin F. Camerer & Antonio Rangel, 2014. "Neural Activity Reveals Preferences without Choices," American Economic Journal: Microeconomics, American Economic Association, vol. 6(2), pages 1-36, May.
    13. Grebitus, Carola & Colson, Gregory & Menapace, Luisa, . "A comparison of hypothetical survey rankings with consumer shopping behavior and product knowledge," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(1), pages 1-13.
    14. Allen Blackman & Francisco Alpízar & Fredrik Carlsson & Marisol Rivera Planter, 2018. "A Contingent Valuation Approach to Estimating Regulatory Costs: Mexico’s Day without Driving Program," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 5(3), pages 607-641.
    15. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part II. Conceptualisation of external validity, sources and explanations of bias and effectiveness of mitigation methods," Journal of choice modelling, Elsevier, vol. 41(C).
    16. He, Senhui & Florkowski, Wojciech J. & Jordan, Jeffrey L., 2002. "Irrational Responses in Contingent Valuation and Their Potential Impacts on Mean Stated Willingness-to-pay," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24914, European Association of Agricultural Economists.
    17. Li, Xiaogu & Jensen, Kimberly L. & Clark, Christopher D. & Lambert, Dayton M., 2016. "Consumer willingness to pay for beef grown using climate friendly production practices," Food Policy, Elsevier, vol. 64(C), pages 93-106.
    18. Francisco Alpizar & Fredrik Carlsson & Olof Johansson-Stenman, 2008. "Does context matter more for hypothetical than for actual contributions? Evidence from a natural field experiment," Experimental Economics, Springer;Economic Science Association, vol. 11(3), pages 299-314, September.
    19. McKenzie Thomas & Kimberly L. Jensen & Dayton M. Lambert & Burton C. English & Christopher D. Clark & Forbes R. Walker, 2021. "Consumer Preferences and Willingness to Pay for Potting Mix with Biochar," Energies, MDPI, vol. 14(12), pages 1-16, June.
    20. Semra Ozdemir, 2015. "Improving the Validity of Stated-Preference Data in Health Research: The Potential of the Time-to-Think Approach," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 8(3), pages 247-255, June.

    More about this item

    Keywords

    Consumer/Household Economics;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea03:22159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.