IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v70y2010i2p308-316.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921-8009(10)00343-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Engel, Stefanie, 2004. "Achieving environmental goals in a world of trade and hidden action: the role of trade policies and eco-labeling," Journal of Environmental Economics and Management, Elsevier, vol. 48(3), pages 1122-1145, November.
    2. Green, Paul E & Srinivasan, V, 1978. "Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Oxford University Press, vol. 5(2), pages 103-123, Se.
    3. van Kempen, Luuk & Muradian, Roldan & Sandóval, César & Castañeda, Juan-Pablo, 2009. "Too poor to be green consumers? A field experiment on revealed preferences for firewood in rural Guatemala," Ecological Economics, Elsevier, vol. 68(7), pages 2160-2167, May.
    4. O'Brien, Kelly A. & Teisl, Mario F., 2004. "Eco-information and its effect on consumer values for environmentally certified forest products," Journal of Forest Economics, Elsevier, vol. 10(2), pages 75-96, September.
    5. Rambonilaza, Tina, 2005. "Land-use planning and public preferences: What can we learn from choice experiments method?," MPRA Paper 9225, University Library of Munich, Germany, revised May 2007.
    6. Simon Cheng & J. Scott Long, 2007. "Testing for IIA in the Multinomial Logit Model," Sociological Methods & Research, , vol. 35(4), pages 583-600, May.
    7. Lars H. Gulbrandsen, 2004. "Overlapping Public and Private Governance: Can Forest Certification Fill the Gaps in the Global Forest Regime?," Global Environmental Politics, MIT Press, vol. 4(2), pages 75-99, May.
    8. Rolfe, John & Bennett, Jeff & Louviere, Jordan, 2000. "Choice modelling and its potential application to tropical rainforest preservation," Ecological Economics, Elsevier, vol. 35(2), pages 289-302, November.
    9. Beggs, S. & Cardell, S. & Hausman, J., 1981. "Assessing the potential demand for electric cars," Journal of Econometrics, Elsevier, vol. 17(1), pages 1-19, September.
    10. Veisten, Knut, 2007. "Willingness to pay for eco-labelled wood furniture: Choice-based conjoint analysis versus open-ended contingent valuation," Journal of Forest Economics, Elsevier, vol. 13(1), pages 29-48, May.
    11. Arnab K. Basu & Nancy H. Chau & Ulrike Grote, 2003. "Eco‐Labeling and Stages of Development," Review of Development Economics, Wiley Blackwell, vol. 7(2), pages 228-247, May.
    12. Pate, Jennifer & Loomis, John, 1997. "The effect of distance on willingness to pay values: a case study of wetlands and salmon in California," Ecological Economics, Elsevier, vol. 20(3), pages 199-207, March.
    13. Fosgerau, Mogens & Bjørner, Thomas Bue, 2006. "Joint models for noise annoyance and willingness to pay for road noise reduction," Transportation Research Part B: Methodological, Elsevier, vol. 40(2), pages 164-178, February.
    14. J. Scott Long & Jeremy Freese, 2006. "Regression Models for Categorical Dependent Variables using Stata, 2nd Edition," Stata Press books, StataCorp LP, edition 2, number long2, March.
    15. Ronald J. Sutherland & Richard G. Walsh, 1985. "Effect of Distance on the Preservation Value of Water Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 281-291.
    16. Marta-Pedroso, Cristina & Freitas, Helena & Domingos, Tiago, 2007. "Testing for the survey mode effect on contingent valuation data quality: A case study of web based versus in-person interviews," Ecological Economics, Elsevier, vol. 62(3-4), pages 388-398, May.
    17. Jayson L. Lusk & F. Bailey Norwood, 2005. "Effect of Experimental Design on Choice-Based Conjoint Valuation Estimates," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 771-785.
    18. Aguilar, Francisco X. & Vlosky, Richard P., 2007. "Consumer willingness to pay price premiums for environmentally certified wood products in the U.S," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1100-1112, May.
    19. Saul Hoffman & Greg Duncan, 1988. "Multinomial and conditional logit discrete-choice models in demography," Demography, Springer;Population Association of America (PAA), vol. 25(3), pages 415-427, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tarmo Räty & Anne Toppinen & Anders Roos & Maria Riala & Anders Q. Nyrud, 2016. "Environmental Policy in the Nordic Wood Product Industry: Insights Into Firms’ Strategies and Communication," Business Strategy and the Environment, Wiley Blackwell, vol. 25(1), pages 10-27, January.
    2. Makiko Nakano, 2019. "Evaluation of Corporate Social Responsibility by Consumers: Use of Organic Material and Long Working Hours of Employees," Sustainability, MDPI, Open Access Journal, vol. 11(19), pages 1-16, September.
    3. Cai, Zhen & Xie, Yi & Aguilar, Francisco X., 2017. "Eco-label credibility and retailer effects on green product purchasing intentions," Forest Policy and Economics, Elsevier, vol. 80(C), pages 200-208.
    4. Yuki Yamamoto & Kenji Takeuchi & Takayoshi Shinkuma, 2012. "Are There Price Premiums for Certified Wood?Empirical Evidence from Log Auction Data in Japan," Discussion Papers 1209, Graduate School of Economics, Kobe University.
    5. Lin, Yu-Hsuan & Kim, KyungJa, 2017. "Willingness to Pay for Government-Certified Agri-Products in South Korea," MPRA Paper 84100, University Library of Munich, Germany.
    6. Nadia Palmieri & Alessandro Suardi & Luigi Pari, 2020. "Italian Consumers’ Willingness to Pay for Eucalyptus Firewood," Sustainability, MDPI, Open Access Journal, vol. 12(7), pages 1-14, March.
    7. Yamamoto, Yuki & Takeuchi, Kenji & Shinkuma, Takayoshi, 2014. "Is there a price premium for certified wood? Empirical evidence from log auction data in Japan," Forest Policy and Economics, Elsevier, vol. 38(C), pages 168-172.
    8. Brusselaers, Jan & Van Huylenbroeck, Guido & Buysse, Jeroen, 2017. "Green Public Procurement of Certified Wood: Spatial Leverage Effect and Welfare Implications," Ecological Economics, Elsevier, vol. 135(C), pages 91-102.
    9. Zander, Kerstin K. & Signorello, Giovanni & De Salvo, Maria & Gandini, Gustavo & Drucker, Adam G., 2013. "Assessing the total economic value of threatened livestock breeds in Italy: Implications for conservation policy," Ecological Economics, Elsevier, vol. 93(C), pages 219-229.
    10. Aguilar, Francisco X. & Cai, Zhen & Mohebalian, Phillip & Thompson, Wyatt, 2015. "Exploring the drivers' side of the “blend wall”: U.S. consumer preferences for ethanol blend fuels," Energy Economics, Elsevier, vol. 49(C), pages 217-226.
    11. Cai, Zhen & Aguilar, Francisco X., 2013. "Consumer stated purchasing preferences and corporate social responsibility in the wood products industry: A conjoint analysis in the U.S. and China," Ecological Economics, Elsevier, vol. 95(C), pages 118-127.
    12. Volker Lingnau & Florian Fuchs & Florian Beham, 2019. "The impact of sustainability in coffee production on consumers’ willingness to pay–new evidence from the field of ethical consumption," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 30(1), pages 65-93, April.
    13. Vásquez Lavin, Felipe & Barrientos, Manuel & Castillo, Álvaro & Herrera, Iván & Ponce Oliva, Roberto D., 2020. "Firewood certification programs: Key attributes and policy implications," Energy Policy, Elsevier, vol. 137(C).
    14. Mohebalian, Phillip M. & Aguilar, Francisco X., 2018. "Design of tropical forest conservation contracts considering risk of deforestation," Land Use Policy, Elsevier, vol. 70(C), pages 451-462.
    15. Florian Felix Klein & Agnes Emberger-Klein & Klaus Menrad, 2020. "Indicators of Consumers’ Preferences for Bio-Based Apparel: A German Case Study with a Functional Rain Jacket Made of Bioplastic," Sustainability, MDPI, Open Access Journal, vol. 12(2), pages 1-20, January.
    16. Menegaki, Angeliki, N. & Olsen, Søren Bøye & Tsagarakis, Konstantinos P., 2016. "Towards a common standard – A reporting checklist for web-based stated preference valuation surveys and a critique for mode surveys," Journal of choice modelling, Elsevier, vol. 18(C), pages 18-50.
    17. Peschel, Anne & Grebitus, Carola & Steiner, Bodo & Veeman, Michele, 2016. "How does consumer knowledge affect environmentally sustainable choices? Evidence from a cross-country latent class analysis of food labels," MPRA Paper 69864, University Library of Munich, Germany.
    18. Nadia Palmieri & Alessandro Suardi & Francesco Latterini & Luigi Pari, 2020. "The Eucalyptus Firewood: Understanding Consumers’ Behaviour and Motivations," Agriculture, MDPI, Open Access Journal, vol. 10(11), pages 1-12, October.
    19. Panico, Teresa & Pagnani, Tiziana & Caracciolo, Francesco, 2018. "Intention to Purchase Sustainable Wood Products: An Empirical Analysis of the Determinants," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    20. Sihem Dekhili & Mohamed Akli Achabou, 2013. "Price Fairness in the Case of Green Products: Enterprises' Policies and Consumers' Perceptions," Business Strategy and the Environment, Wiley Blackwell, vol. 22(8), pages 547-560, December.
    21. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    22. Hallstein, Eric & Villas-Boas, Sofia B., 2013. "Can household consumers save the wild fish? Lessons from a sustainable seafood advisory," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 52-71.
    23. Meyerhoff, Jürgen & Glenk, Klaus, 2015. "Learning how to choose—effects of instructional choice sets in discrete choice experiments," Resource and Energy Economics, Elsevier, vol. 41(C), pages 122-142.
    24. Anni Tuppura & Anne Toppinen & Kaisu Puumalainen, 2016. "Forest Certification and ISO 14001: Current State and Motivation in Forest Companies," Business Strategy and the Environment, Wiley Blackwell, vol. 25(5), pages 355-368, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vásquez Lavin, Felipe & Barrientos, Manuel & Castillo, Álvaro & Herrera, Iván & Ponce Oliva, Roberto D., 2020. "Firewood certification programs: Key attributes and policy implications," Energy Policy, Elsevier, vol. 137(C).
    2. Martin Van Bueren & Jeff Bennett, 2004. "Towards the development of a transferable set of value estimates for environmental attributes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(1), pages 1-32, March.
    3. Richards, Daniel R. & Warren, Philip H. & Moggridge, Helen L. & Maltby, Lorraine, 2015. "Spatial variation in the impact of dragonflies and debris on recreational ecosystem services in a floodplain wetland," Ecosystem Services, Elsevier, vol. 15(C), pages 113-121.
    4. Panico, Teresa & Pagnani, Tiziana & Caracciolo, Francesco, 2018. "Intention to Purchase Sustainable Wood Products: An Empirical Analysis of the Determinants," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 9(4), August.
    5. Hallstein, Eric & Villas-Boas, Sofia B., 2013. "Can household consumers save the wild fish? Lessons from a sustainable seafood advisory," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 52-71.
    6. Veisten, Knut, 2007. "Willingness to pay for eco-labelled wood furniture: Choice-based conjoint analysis versus open-ended contingent valuation," Journal of Forest Economics, Elsevier, vol. 13(1), pages 29-48, May.
    7. Yamamoto, Yuki & Takeuchi, Kenji & Shinkuma, Takayoshi, 2014. "Is there a price premium for certified wood? Empirical evidence from log auction data in Japan," Forest Policy and Economics, Elsevier, vol. 38(C), pages 168-172.
    8. Higgins, Kieran & Hutchinson, W. George & Longo, Alberto, 2020. "Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    9. Tully, Stephanie M. & Winer, Russell S., 2014. "The Role of the Beneficiary in Willingness to Pay for Socially Responsible Products: A Meta-analysis," Journal of Retailing, Elsevier, vol. 90(2), pages 255-274.
    10. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    11. Jae Kim & Seung-Nam Kim & Soogwan Doh, 2015. "The distance decay of willingness to pay and the spatial distribution of benefits and costs for the ecological restoration of an urban branch stream in Ulsan, South Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 835-853, May.
    12. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    13. Erik Stam & Roy Thurik & Peter van der Zwan, 2010. "Entrepreneurial exit in real and imagined markets," Industrial and Corporate Change, Oxford University Press, vol. 19(4), pages 1109-1139, August.
    14. Ritter, Nolan & Vance, Colin, 2013. "Do fewer people mean fewer cars? Population decline and car ownership in Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 50(C), pages 74-85.
    15. Concu, Giovanni B., 2007. "Investigating distance effects on environmental values: a choice modelling approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-20.
    16. Barbara Baarsma, 2003. "The Valuation of the IJmeer Nature Reserve using Conjoint Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 25(3), pages 343-356, July.
    17. Ferrini, Silvia & Scarpa, Riccardo, 2007. "Designs with a priori information for nonmarket valuation with choice experiments: A Monte Carlo study," Journal of Environmental Economics and Management, Elsevier, vol. 53(3), pages 342-363, May.
    18. Hubert Paluš & Ján Parobek & Rastislav Šulek & Ján Lichý & Jaroslav Šálka, 2018. "Understanding Sustainable Forest Management Certification in Slovakia: Forest Owners’ Perception of Expectations, Benefits and Problems," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-17, July.
    19. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    20. Xuehong Wang & Jeff Bennett & Chen Xie & Zhitao Zhang, 2010. "Estimating the Non-market Environmental Benefits of Land Use Change in China," Chapters, in: Jeff Bennett & Ekin Birol (ed.), Choice Experiments in Developing Countries, chapter 6, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2010:i:2:p:308-316. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.