Consumer Perceptions of Environmentally Friendly Products in New Foundland and Labrador
A stated-preference model was specified by a logit model to analyze consumersâ€™ willingness-to-pay a five-per cent premium to purchase environmentally friendly products in Newfoundland and Labrador. Although the industry suffers from insufficient number of certified producers in the region, the findings from the model reflect the existence of potential demands for environmentally friendly products. Results showed that survey respondents were willing to pay at least a five-per cent premium, as they believed pesticide residues would have negative impacts on their health conditions. In addition, being married, higher degree of education, knowledge about new methods of farming practices, such as integrated-pest management, and early adopters in trying newly introduced products were among the factors affecting consumer decisions in paying the premium.
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