Consumers' Willingness to Pay for Eco-Certified Wood Products
Journal Agricultural and Applied Economics
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.
Jensen, Kimberly L., Paul M. Jakus, Burton C. English and Jamey Menard. 2004. “Consumers’ Willingness to Pay for Eco-Certified Wood Products.” J. Agricultural and Applied Economics, 36(3):617-626.