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Households' Willingness to Pay for "Green" Goods: Evidence from Patagonia's Introduction of Organic Cotton Sportswear

  • Ramon Casadesus-Masanell
  • Michael Crooke
  • Forest Reinhardt
  • Vishal Vasishth
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    "To shed light on individuals' willingness to pay for "green" goods (i.e., goods that are supposed to have lower adverse environmental impacts either in production or in use), we study data from the introduction by Patagonia, Inc., of organic cotton sportswear in the mid-1990s. Patagonia, a maker of high-end outdoor wear, substituted organic cotton for conventionally grown cotton in all of its sportswear (i.e., casual clothing for travel and leisure) in 1996. We find that customers were willing to pay significant premiums for organic cotton garments although the organic cotton provided no demonstrable private incremental benefits to the customer." Copyright (c) 2009, The Author(s) Journal Compilation (c) 2009 Wiley Periodicals, Inc..

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    Article provided by Wiley Blackwell in its journal Journal of Economics & Management Strategy.

    Volume (Year): 18 (2009)
    Issue (Month): 1 (03)
    Pages: 203-233

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    Handle: RePEc:bla:jemstr:v:18:y:2009:i:1:p:203-233
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