Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach

Higgins, Kieran; Hutchinson, George; Longo, Alberto

doi:10.1016/j.socec.2020.101572

Cited by 32 publications

(20 citation statements)

References 71 publications

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“…[13] compared consumer's price premiums for FSC Labeled Wood Flooring in five cities of China and found that some consumers indeed exhibit preference for environmentally friendly flooring. Higgins et al [14] concluded that consumer's conservation-orientated beliefs enable them to pay a price premiums for Eco-Labelled forest products in Northern Ireland. From the results of above research, it is true that some consumers have purchasing preference for environmentfriendly and low-carbon products and are willing to pay a higher price for them.…”

Section: Literature Reviewmentioning

confidence: 99%

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Tang

2022

Complexity

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In literature, the firm’s selection of dual-product strategy under cap-and-trade regulation and the optimal emission reduction decisions are not well studied, especially through an analytical approach. We develop a theoretic model to investigate the firm’s selection on three product strategies in the presence of cap-and-trade policy, including two single product strategies and a dual-product strategy, and identify two types of consumers: consumers with low-carbon preference and regular consumers. Our analysis shows that, (i) in the absence of cap-and-trade policy, it is optimal to adopt dual-product strategy, but in the presence of this policy, it is optimal to adopt dual-product strategy or low-carbon product strategy. (ii) Compared with ordinary product strategy, adopting a low-carbon product strategy or dual-product strategy benefits the firm under cap-and-trade regulation. (iii) The additional cost of producing low-carbon product has an impact on the firm’s product strategy selection under cap-and-trade regulation. When it falls below a certain threshold, it is optimal to adopt a dual-product strategy; otherwise, it is optimal to adopt a low-carbon product strategy. Our research can provide reference for firm’s decision-making and government’s policy formulation.

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Section: Literature Reviewmentioning

confidence: 99%

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Tang

2022

Complexity

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“…According to a study on consumers' WTP for eco-labeled forest products in Northern Ireland, people were willing to pay up to 88% more for eco-labeled wood products. They also preferred fewer product certificates and thought that sustainable and eco-friendly labels were more important [35]. Chinese consumers had different levels of WTP for rice with different labels [18].…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating the Willingness to Pay for Eco-Labeled Products of Formosan Pangolin (Manis pentadactyla pentadactyla) Conservation

et al. 2021

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Pangolins are currently the most smuggled mammals in the world. Meanwhile, Taiwan has demonstrated the world’s first case of the use of artificial feeding to raise pangolins to adulthood. The government has also begun to cooperate with farmers in pangolin-spotted areas. Agricultural products can earn the green label once they have passed the evaluation. The challenge is that very few farms have obtained the pangolin-friendly label so far. Our hypothesis is that farmers lack the knowledge that consumers would pay additional money for products that are labeled pangolin-friendly compared to regular ones. Thus, farmers have an insufficient incentive to apply for this label. This research aims to fill this gap by providing people with the necessary knowledge. Contingent valuation with the single-bounded dichotomous choice format was used, which involved investigating 417 valid observations. We found the following: (1) customers are willing to pay about 8.06 USD for pangolin-friendly rice (an increase of 397% in relation to the mean price of rice); (2) customers are willing to pay for about 11.46 USD for pangolin-friendly tea (an increase of 179% in relation to the mean price of tea); and (3) customers are willing to pay about 25.81 USD for pangolin-friendly coffee (an increase of 509% in relation to the mean price of coffee). Our findings give farmers more incentive to conduct eco-friendly production. Consequently, the quality of agricultural products as well as the habitats of endangered pangolins improve. Thus, consumers’ health, the environment, and the future of pangolin conservation can benefit in this attempt to achieve sustainability.

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“…As previously explained to participants, at the conclusion, one good and one of the three bids for it would be chosen at random as final and binding, further increasing the incentive compatibility of the experiment. Please consult Higgins et al (2020) for a further description of the auction experiment method.…”

Section: Design and Proceduresmentioning

confidence: 99%

Experimental auction confirmation that social desirability bias does not predict willingness to pay for eco-labeled goods

2021

Self Cite

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It is often assumed that consumers' willingness to pay (WTP) for eco-labeled products in research settings is not because of a desire for environmental protection, but rather that they are socially compelled to make decisions that reflects favorably on them, limiting the validity of findings. Using a second-price Vickrey experimental auction, this study found higher WTP for an eco-labeled product than a comparable good, but that social desirability bias, measured by the Marlowe-Crowne Social Desirability Scale, was not a significant predictor of WTP. Instead, environmental consciousness, environmental knowledge, education, and available information were stronger predictors of WTP for eco-labeled goods.

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Willingness-to-Pay for Eco-Labelled Forest Products in Northern Ireland: An Experimental Auction Approach

Cited by 32 publications

References 71 publications

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Production Strategy Selection and Carbon Emission Reduction with Consumer Heterogeneity under Cap‐and‐Trade Regulation

Estimating the Willingness to Pay for Eco-Labeled Products of Formosan Pangolin (Manis pentadactyla pentadactyla) Conservation

Experimental auction confirmation that social desirability bias does not predict willingness to pay for eco-labeled goods

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