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Are There Price Premiums for Certified Wood? Empirical Evidence from Log Auction Data in Japan

Author

Listed:
  • Yuki Yamamoto

    (Graduate School of Economics, Kobe University)

  • Kenji Takeuchi

    (Graduate School of Economics, Kobe University)

  • Takayoshi Shinkuma

    (Faculty of Economics, Kansai University)

Abstract

By using data on more than 38,000 log auction transactions from market in Shizuoka Prefecture, Japan, we estimate whether there is a price premium for certification of sustainable forest management. We found a positive and significant effect of certification for logs, especially in the smaller diameter category. The reason for the difference between diameter size can be attributed to demand from pulp and paper manufacturers. The premium found was 1.8% of the price of conventional logs, in the lower range of additional willingness to pay found in previous studies that used stated preference techniques. An analysis that includes a pre-certification equilibrium price suggests that Japanese certification is unsuccessful despite the existence of a price premium.

Suggested Citation

  • Yuki Yamamoto & Kenji Takeuchi & Takayoshi Shinkuma, 2012. "Are There Price Premiums for Certified Wood? Empirical Evidence from Log Auction Data in Japan," Discussion Papers 1209, Graduate School of Economics, Kobe University.
    • Handle: RePEc:koe:wpaper:1209
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    File URL: http://www.econ.kobe-u.ac.jp/RePEc/koe/wpaper/2012/1209.pdf
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