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Determinants of Participation versus Consumption in the Nordic Swan Eco-labeled Market

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  • Brouhle, Keith
  • Khanna, Madhu

Abstract

This paper uses data on purchases of Nordic Swan Eco-labeled toilet paper and paper towels by individual Danish households to analyze the determinants of demand for eco-labeled goods and the decision process underlying it. Among several models that are estimated, a double-hurdle model that distinguishes between factors influencing the discrete decision to participate by purchasing an eco-labeled good and the continuous decision about the quantity of the eco-labeled good to be purchased is found to fit the data best. We find that prices as well as consumer tastes and preferences, proxied by their socio-demographic characteristics, have a much stronger impact on the participation decision than on quantity consumed for both Swan-labeled toilet paper and paper towels. The quantity consumed of Swan-labeled goods, on the other hand, is strongly affected by factors such as availability of Swan goods in shops, discount sales on Swan goods, and household size.

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  • Brouhle, Keith & Khanna, Madhu, 2005. "Determinants of Participation versus Consumption in the Nordic Swan Eco-labeled Market," 2005 Annual meeting, July 24-27, Providence, RI 19443, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea05:19443
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    1. Gunnar Gutsche & Bernhard Zwergel, 2016. "Information barriers and SRI market participation – Can sustainability and transparency labels help?," MAGKS Papers on Economics 201624, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    2. Craig, Christopher A., 2016. "Energy consumption, energy efficiency, and consumer perceptions: A case study for the Southeast United States," Applied Energy, Elsevier, vol. 165(C), pages 660-669.
    3. Delmas, Magali A. & Gergaud, Olivier & Lim, Jinghui, 2016. "Does Organic Wine Taste Better? An Analysis of Experts' Ratings," Journal of Wine Economics, Cambridge University Press, vol. 11(03), pages 329-354, December.
    4. repec:kap:jbuset:v:147:y:2018:i:2:d:10.1007_s10551-015-2927-3 is not listed on IDEAS
    5. Kimitaka Nishitani & Munehiko Itoh, 2014. "Product Innovation in Response to Environmental Standards and Competitive Advantage: A Hedonic Analysis of Refrigerators in the Japanese Retail Market," Discussion Paper Series DP2014-30, Research Institute for Economics & Business Administration, Kobe University.
    6. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J. & White, Benedict, 2011. "Factors that affect the use of herbicides in Philippine rice farming systems," Working Papers 108769, University of Western Australia, School of Agricultural and Resource Economics.
    7. Sun, Junxiu & Yin, Haitao & Wang, Feng, 2014. "Net private benefits of purchasing eco-labeled air conditioners and subsidization policies in China," Energy Policy, Elsevier, vol. 73(C), pages 186-195.
    8. Vlaeminck, Pieter & Jiang, Ting & Vranken, Liesbet, 2014. "Food labeling and eco-friendly consumption: Experimental evidence from a Belgian supermarket," Ecological Economics, Elsevier, vol. 108(C), pages 180-190.
    9. Genereuse, Umuhoza, 2012. "Analysis of Factors Influencing Women Participation in Coffee Value Chain in Huye District, Rwanda," Research Theses 243451, Collaborative Masters Program in Agricultural and Applied Economics.
    10. Craig, Christopher A. & Allen, Myria W., 2014. "Enhanced understanding of energy ratepayers: Factors influencing perceptions of government energy efficiency subsidies and utility alternative energy use," Energy Policy, Elsevier, vol. 66(C), pages 224-233.

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