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Is there a price premium for certified wood? Empirical evidence from log auction data in Japan

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  • Yamamoto, Yuki
  • Takeuchi, Kenji
  • Shinkuma, Takayoshi

Abstract

We investigate the price premium on certified wood from sustainable forests, using data from more than 38,000 log transactions in Shizuoka Prefecture, Japan. We found a positive and statistically significant effect of certification. The premium added by certification was 1.4% more than the price of conventional logs. This was well in the lower range of additional willingness to pay found in previous studies that used stated preference techniques. The effect of certification varies by wood species. The premium for cedar is 4.0%, while that for cypress is statistically insignificant.

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  • 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.
    • Handle: RePEc:eee:forpol:v:38:y:2014:i:c:p:168-172
    DOI: 10.1016/j.forpol.2013.07.002
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    3. 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, vol. 10(7), pages 1-17, July.
    4. Paletto, Alessandro & Notaro, Sandra, 2018. "Secondary wood manufactures' willingness-to-pay for certified wood products in Italy," Forest Policy and Economics, Elsevier, vol. 92(C), pages 65-72.
    5. Zanchini, Raffaele & Blanc, Simone & Pippinato, Liam & Poratelli, Francesca & Bruzzese, Stefano & Brun, Filippo, 2022. "Enhancing wood products through ENplus, FSC and PEFC certifications: Which attributes do consumers value the most?," Forest Policy and Economics, Elsevier, vol. 142(C).
    6. Luo, Wen & Mineo, Keito & Matsushita, Koji & Kanzaki, Mamoru, 2018. "Consumer willingness to pay for modern wooden structures: A comparison between China and Japan," Forest Policy and Economics, Elsevier, vol. 91(C), pages 84-93.
    7. Brusselaers, Jan & Verbeke, Wim & Mettepenningen, Evy & Buysse, Jeroen, 2020. "Unravelling the true drivers for eco-certified wood consumption by introducing scarcity," Forest Policy and Economics, Elsevier, vol. 111(C).

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