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Will consumers follow climate leaders? The effect of manufacturer participation in a voluntary environmental program on consumer preferences

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  • Xiaogu Li
  • Christopher Clark
  • Kimberly Jensen
  • Steven Yen

Abstract

In 2002, the US Environmental Protection Agency (USEPA) established a voluntary environmental program called the Climate Leaders (CL) Program. Participating firms developed greenhouse gas emissions inventories, set emissions reductions goals, and annually reported progress toward those goals. While the program was not designed to function as an eco-labeling program, one possible motivation for participation in the program was to positively influence consumer perceptions for firm products and services. USEPA discontinued the CL program in 2011. In this study, data from a contingent choice experiment from a national online survey are used to examine whether the CL program could have been effectively adopted as a consumer product labeling program. Results suggest that consumers are willing to pay more for refrigerators manufactured by CL program participants and that willingness-to-pay is influenced by both respondent characteristics and attitudes. Copyright Springer Japan 2014

Suggested Citation

  • 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.
    • Handle: RePEc:spr:envpol:v:16:y:2014:i:1:p:69-87
    DOI: 10.1007/s10018-013-0071-9
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    2. Irani, Alexandra & Chalak, Ali, 2015. "Harnessing motorists’ potential demand for hybrid-electric vehicles in Lebanon: Policy options, CO2 emissions reduction and welfare gains," Transport Policy, Elsevier, vol. 42(C), pages 144-155.

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    More about this item

    Keywords

    Climate change; Eco-label; Refrigerator; Willingness-to-pay; Generalized Multinomial Logit; Q54; D12;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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