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Understanding the determinants of consumersf willingness to pay for eco-labeled products: An empirical analysis of the China Environmental Label

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Author Info
Junyi Shen (OSIPP,Osaka University)
Abstract

This study applies data from a web-based survey conducted in mainland China to examine the determinants of consumersf willingness to pay (WTP) for seven different product categories awarded with China Environmental Label and compare the mean WTP estimates among these categories. The Interval Regression method is used for estimation. The results indicate that Chinese consumers who regard environmental conservation as being more important than life convenience, who believe purchasing the eco-labeled products is good for the environment, and who have the experience in purchasing eco-labeled products are willing to pay more for those products with environmental label or eco-label. In addition, socio-demographic characteristics such as gender, age, education and household income are found to be important factors to affect Chinese consumersf WTP amounts. Finally, the results of pair-wise comparison among the mean WTP estimates of various eco-labeled products indicate that most of them are different, which implies that the degrees of Chinese consumersf willingness to pay extra money for China Environmental Label are different based on the types of products.

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File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2008/DP2008E001.pdf
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Publisher Info
Paper provided by Osaka School of International Public Policy, Osaka University in its series OSIPP Discussion Paper with number 08E001.

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Length: 21 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:osp:wpaper:08e001

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Related research
Keywords: China Environmental Label; Eco-labeled products; Interval regression; Payment card; Willingness to pay;

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Junyi Shen & Tatsuyoshi Saijo, 2007. "Does energy efficiency label alter consumersf purchase decision? A latent class approach on Shanghai data," OSIPP Discussion Paper 07E005, Osaka School of International Public Policy, Osaka University. [Downloadable!]
  2. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November. [Downloadable!] (restricted)
  3. Teisl, Mario F. & Roe, Brian & Hicks, Robert L., 2002. "Can Eco-Labels Tune a Market? Evidence from Dolphin-Safe Labeling," Journal of Environmental Economics and Management, Elsevier, vol. 43(3), pages 339-359, May. [Downloadable!] (restricted)
  4. Cameron, Trudy Ann, 1987. "The impact of grouping coarseness in alternative grouped-data regression models," Journal of Econometrics, Elsevier, vol. 35(1), pages 37-57, May. [Downloadable!] (restricted)
    Other versions:
  5. Lori M. Hunter & Alison Hatch & Aaron Johnson, 2004. "Cross-National Gender Variation in Environmental Behaviors," Social Science Quarterly, The Southwestern Social Science Association, vol. 85(3), pages 677-694. [Downloadable!] (restricted)
  6. Cason, Timothy N. & Gangadharan, Lata, 2002. "Environmental Labeling and Incomplete Consumer Information in Laboratory Markets," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 113-134, January. [Downloadable!] (restricted)
    Other versions:
  7. Johnston, Robert J. & Wessells, Cathy R. & Donath, Holger & Asche, Frank, 2001. "Measuring Consumer Preferences For Ecolabeled Seafood: An International Comparison," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(01), July. [Downloadable!]
  8. Roe, Brian & Teisl, Mario F. & Levy, Alan & Russell, Matthew, 2001. "US consumers' willingness to pay for green electricity," Energy Policy, Elsevier, vol. 29(11), pages 917-925, September. [Downloadable!] (restricted)
  9. Arnab K. Basu & Nancy H. Chau & Ulrike Grote, 2003. "Eco-Labeling and Stages of Development," Review of Development Economics, Blackwell Publishing, vol. 7(2), pages 228-247, 05. [Downloadable!] (restricted)
  10. Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier. [Downloadable!] (restricted)
  11. Wanki Moon & Wojciech J. Florkowski & Bernhard Brückner & Ilona Schonhof, 2002. "Willingness to Pay for Environmental Practices: Implications for Eco-Labeling," Land Economics, University of Wisconsin Press, vol. 78(1), pages 88-102. [Downloadable!] (restricted)
  12. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May. [Downloadable!] (restricted)
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