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Understanding the determinants of consumers f willingness to pay for eco-labeled products: An empirical analysis of the China Environmental Label

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  • Junyi Shen

    (OSIPP,Osaka University)

Abstract

This study applies data from a web-based survey conducted in mainland China to examine the determinants of consumers f willingness to pay (WTP) for seven different product categories awarded with China Environmental Label and compare the mean WTP estimates among these categories. The Interval Regression method is used for estimation. The results indicate that Chinese consumers who regard environmental conservation as being more important than life convenience, who believe purchasing the eco-labeled products is good for the environment, and who have the experience in purchasing eco-labeled products are willing to pay more for those products with environmental label or eco-label. In addition, socio-demographic characteristics such as gender, age, education and household income are found to be important factors to affect Chinese consumers f WTP amounts. Finally, the results of pair-wise comparison among the mean WTP estimates of various eco-labeled products indicate that most of them are different, which implies that the degrees of Chinese consumers f willingness to pay extra money for China Environmental Label are different based on the types of products.

Suggested Citation

  • Junyi Shen, 2008. "Understanding the determinants of consumers f willingness to pay for eco-labeled products: An empirical analysis of the China Environmental Label," OSIPP Discussion Paper 08E001, Osaka School of International Public Policy, Osaka University.
  • Handle: RePEc:osp:wpaper:08e001
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    File URL: http://www.osipp.osaka-u.ac.jp/archives/DP/2008/DP2008E001.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ward, David O. & Clark, Christopher D. & Jensen, Kimberly L. & Yen, Steven T. & Russell, Clifford S., 2011. "Factors influencing willingness-to-pay for the ENERGY STAR® label," Energy Policy, Elsevier, vol. 39(3), pages 1450-1458, March.
    2. Yadav, Rambalak & Pathak, Govind S., 2017. "Determinants of Consumers' Green Purchase Behavior in a Developing Nation: Applying and Extending the Theory of Planned Behavior," Ecological Economics, Elsevier, vol. 134(C), pages 114-122.
    3. Charu Grover & Sangeeta Bansal, "undated". "Imperfect Certification under Cournot Duopoly," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 15-03, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.

    More about this item

    Keywords

    China Environmental Label; Eco-labeled products; Interval regression; Payment card; Willingness to pay;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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