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Consumers' Willingness to Pay for Eco-Certified Wood Products

Published online by Cambridge University Press:  28 April 2015

Kimberly L. Jensen ,
Paul M. Jakus ,
Burton C. English  and
Jamey Menard
Kimberly L. Jensen
Affiliation:
Department of Agricultural Economics, The University of Tennessee, Knoxville, TN
Paul M. Jakus
Affiliation:
Department of Economics, Utah State University, Logan, UT
Burton C. English
Affiliation:
Department of Agricultural Economics, The University of Tennessee, Knoxville, TN
Jamey Menard
Affiliation:
Department of Agricultural Economics, The University of Tennessee, Knoxville, TN
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Abstract

We use Kriström's simple spike model to assess the factors influencing consumers' willingness to pay a premium for a variety of certified wood products. A survey of over 1,600 Pennsylvania and Tennessee residents found that approximately 35% were willing to pay some positive “premium” for environmentally certified wood products. For three types of wood products (a $28.80 shelf, a $199 chair, and a $799 table), we find the estimated market premiums to be $3.74, $15.94, and $45.07, respectively.

Keywords

eco-certificationeco-labelingprice premiumspike modelsQ5Q23
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 3 , December 2004 , pp. 617 - 626
Copyright
Copyright © Southern Agricultural Economics Association 2004

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