Document Type

Article

Journal/Book Title/Conference

Economics Research Institute Study Paper

Volume

8

Publisher

Utah State University Department of Economics

Publication Date

2004

First Page

1

Last Page

22

Abstract

We use Kristrom'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 1600 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.



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