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Are Consumers Willing to Pay More for Biodegradable Containers Than for Plastic Ones? Evidence from Hypothetical Conjoint Analysis and Nonhypothetical Experimental Auctions

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  • Yue, Chengyan
  • Hall, Charles R.
  • Behe, Bridget K.
  • Campbell, Benjamin L.
  • Dennis, Jennifer H.
  • Lopez, Roberto G.

Abstract

This study used and compared hypothetical conjoint analysis and nonhypothetical experimental auctions to elicit floral customers’ willingness to pay for biodegradable plant containers. The results of the study show that participants were willing to pay a price premium for biodegradable containers, but the premium is not the same for different types of containers. This article also shows the mixed ordered probit model generates more accurate results when analyzing the conjoint analysis Internet survey data than the ordered probit model.

Suggested Citation

  • Yue, Chengyan & Hall, Charles R. & Behe, Bridget K. & Campbell, Benjamin L. & Dennis, Jennifer H. & Lopez, Roberto G., 2010. "Are Consumers Willing to Pay More for Biodegradable Containers Than for Plastic Ones? Evidence from Hypothetical Conjoint Analysis and Nonhypothetical Experimental Auctions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(4), pages 1-16, November.
    • Handle: RePEc:ags:joaaec:100524
    DOI: 10.22004/ag.econ.100524
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    References listed on IDEAS

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    1. Rihn, Alicia & Wei, Xuan & Khachatryan, Hayk, 2019. "Text vs. logo: Does eco-label format influence consumers’ visual attention and willingness-to-pay for fruit plants? An experimental auction approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 82(C).
    2. Collart, Alba J. & Palma, Marco A., 2014. "What Motivates Individuals to Participate in Economic Experiments? A Latent Class Analysis with Unobserved Heterogeneity," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170401, Agricultural and Applied Economics Association.
    3. Collart, Alba J. & Palma, Marco A., 2013. "Modeling Unobserved Consumer Heterogeneity in Experimental Auctions: A Censored Random Parameters Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149484, Agricultural and Applied Economics Association.
    4. Lim, Teng & Massey, Ray & McCann, Laura & Canter, Timothy & Omura, Seabrook & Willett, Cammy & Roach, Alice & Key, Nigel & Dodson, Laura, 2023. "Increasing the Value of Manure for Farmers," USDA Miscellaneous 333552, United States Department of Agriculture.
    5. Brice ARNAUD, 2014. "Extended Producer Responsibility and Green Marketing: an Application to Packaging," Cahiers du GREThA (2007-2019) 2014-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    6. Francesca Colantuoni & Gianni Cicia & Teresa Del Giudice & Daniel Lass & Francesco Caracciolo & Pasquale Lombardi, 2016. "Heterogeneous Preferences for Domestic Fresh Produce: Evidence from German and Italian Early Potato Markets," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 512-530, November.
    7. 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.
    8. Helen Arce Salazar & Leon Oerlemans, 2016. "Do We Follow the Leader or the Masses? Antecedents of the Willingness to Pay Extra for Eco-Products," Journal of Consumer Affairs, Wiley Blackwell, vol. 50(2), pages 286-314, July.
    9. Morone, Piergiuseppe & Caferra, Rocco & D'Adamo, Idiano & Falcone, Pasquale Marcello & Imbert, Enrica & Morone, Andrea, 2021. "Consumer willingness to pay for bio-based products: Do certifications matter?," International Journal of Production Economics, Elsevier, vol. 240(C).
    10. Ahmed Seid Hassen, 2016. "Consumers' Willingness to Pay for Environmental Attributes of a Cut Flower in Ethiopia: A Choice Experiment Approach," Yildiz Social Science Review, Yildiz Technical University, vol. 2(1), pages 31-46.
    11. Wei, Xuan & Khachatryan, Hayk, 2023. "How consequential is policy consequentiality? Evidence from online discrete choice experiment with ornamental plants," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).
    12. E. Schimmenti & A. Galati & V. Borsellino & C. Ievoli & C. Lupi & S. Tinervia, 2013. "Behaviour of consumers of conventional and organic flowers and ornamental plants in Italy," Horticultural Science, Czech Academy of Agricultural Sciences, vol. 40(4), pages 162-171.
    13. Wensing, Joana & Caputo, Vincenzina & Carraresi, Laura & Bröring, Stefanie, 2020. "The effects of green nudges on consumer valuation of bio-based plastic packaging," Ecological Economics, Elsevier, vol. 178(C).
    14. Sandra Notaro & Elisabetta Lovera & Alessandro Paletto, 2022. "Behaviours and attitudes of consumers towards bioplastics: An exploratory study in Italy," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 68(4), pages 121-135.
    15. Ajayi, V. & Reiner, D., 2020. "Consumer Willingness to Pay for Reducing the Environmental Footprint of Green Plastics," Cambridge Working Papers in Economics 20110, Faculty of Economics, University of Cambridge.
    16. Chengyan Yue & Ben Campbell & Charles Hall & Bridget Behe & Jennifer Dennis & Hayk Khachatryan, 2016. "Consumer Preference for Sustainable Attributes in Plants: Evidence from Experimental Auctions," Agribusiness, John Wiley & Sons, Ltd., vol. 32(2), pages 222-235, April.
    17. Clinton Amos & Anthony Allred & Lixuan Zhang, 2017. "Do Biodegradable Labels Lead to an Eco-safety Halo Effect?," Journal of Consumer Policy, Springer, vol. 40(3), pages 279-298, September.
    18. Yue, Chengyan & Hugie, Kari & Watkins, Eric, 2012. "Are consumers willing to pay more for low-input turfgrasses on residential lawns? Evidence from choice experiments," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(4), pages 1-12, November.
    19. Brice Arnaud, 2017. "Extended Producer Responsibility and Green Marketing: An Application to Packaging," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(2), pages 285-296, June.
    20. Chen, Kuan-Ju & Marsh, Thomas L. & Tozer, Peter, 2017. "Willingness to Pay for Strawberries Grown on Biodegradable Mulches," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258329, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Environmental Economics and Policy; Financial Economics; Food Consumption/Nutrition/Food Safety; Marketing; Public Economics; Research and Development/Tech Change/Emerging Technologies;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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