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Consumer willingness to pay for eco-labels in China: A choice experiment approach

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  • Xuemei Zhang
  • Haitao Yin
  • Rui Zhao

Abstract

The use of eco-labels has become increasingly popular in China. This study aims to understand whether Chinese consumers are willing to pay for eco-labels and how their willingness to pay (WTP) is determined. Although we find that Chinese consumers are willing to pay more for products that are labeled as having greater energy efficiency (Energy Efficiency Label) or as having been produced using more environmentally-friendly production processes (Environmental Label), some practices have significantly impaired the effectiveness of these labels, e.g. the burgeoning use of eco-labels has led to label confusion; public trust towards eco-labels. The policy implications are discussed in this study.

Suggested Citation

  • Xuemei Zhang & Haitao Yin & Rui Zhao, 2021. "Consumer willingness to pay for eco-labels in China: A choice experiment approach," Journal of Management Analytics, Taylor & Francis Journals, vol. 8(4), pages 673-692, October.
    • Handle: RePEc:taf:tjmaxx:v:8:y:2021:i:4:p:673-692
    DOI: 10.1080/23270012.2021.1993096
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    Cited by:

    1. Xingyuan Wang & Yingying Du & Yun Liu & Shuyang Wang, 2022. "Telling You More Fluently: Effect of the Joint Presentation of Eco-Label Information on Consumers’ Purchase Intention," IJERPH, MDPI, vol. 19(20), pages 1-19, October.
    2. Sofia Brito-Ramos & Maria Céu Cortez & Florinda Silva, 2022. "Do sustainability signals diverge? An analysis of labeling schemes for socially responsible investments ," Working Papers hal-04064367, HAL.
    3. Zhang, Yixiang & Song, Bowei, 2023. "Does energy-efficiency label affect appliance price? Empirical analysis of the new national standard air conditioners in China," Energy, Elsevier, vol. 269(C).

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