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Consumer Preference for Alternative Milk Packaging: The Case of an Inferred Environmental Attribute

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  • Neill, Clinton L.
  • Williams, Ryan B.

Abstract

Ecolabeling allows firms to segment a market by informing consumers about unobservable attributes of a product. Previous studies evaluate consumer preferences for products explicitly labeled as possessing positive environmental attributes. This research evaluates consumers’ willingness to pay for a product that is perceived by the consumer as having environmentally friendly attributes. We explore glass packaging for fluid milk as a case study. Data were collected through a contingent valuation survey, and a bound-and-a-half logit model was employed. The estimated premium is 59.78 cents with a premium between $0.73 and $0.92 for consumers more likely to prefer the glass alternative.

Suggested Citation

  • Neill, Clinton L. & Williams, Ryan B., 2016. "Consumer Preference for Alternative Milk Packaging: The Case of an Inferred Environmental Attribute," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 48(1), January.
    • Handle: RePEc:ags:joaaec:349272
    DOI: 10.22004/ag.econ.349272
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    References listed on IDEAS

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    1. Patrick Bajari & C. Lanier Benkard, 2005. "Demand Estimation with Heterogeneous Consumers and Unobserved Product Characteristics: A Hedonic Approach," Journal of Political Economy, University of Chicago Press, vol. 113(6), pages 1239-1276, December.
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    Keywords

    Environmental Economics and Policy;

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