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Conjoint effect of environmental labeling, disclosure of forest of origin and price on consumer preferences for wood products in the US and UK

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  • Aguilar, Francisco X.
  • Cai, Zhen

Abstract

A study that conjointly analyzed the effects of environmental labeling, disclosure of forest of origin, and price on consumer preferences for wood products was conducted in the US and the UK. A choice-based elicitation tool was used to mimic a real-life situation where a single product was selected over a set of options. Data collected were analyzed using a conditional logit model. Certification issued by a government agency or an environmental non-government organization both had a favorable effect on consumer preference over a non-certified option. The most relevant implication of our findings was the negative effect that disclosing information about a product coming from tropical forests had on consumer preferences, even compared to a product of unknown origin. A decline in product preference was observed along higher price premiums as expected. The degree of sensitivity to price changes was affected by demographic characteristics. Model coefficients were used to estimate market shares of tropical wood products under different scenarios in both countries. Scenarios explored the effect of environmental certification and price premiums on product market shares.

Suggested Citation

  • Aguilar, Francisco X. & Cai, Zhen, 2010. "Conjoint effect of environmental labeling, disclosure of forest of origin and price on consumer preferences for wood products in the US and UK," Ecological Economics, Elsevier, vol. 70(2), pages 308-316, December.
  • Handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:308-316
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