Market Participation and Willingness to Pay for Environmentally Certified Hardwood Products
The purpose of this study is to ascertain (1) consumers' willingness to participate in a market for environmentally certified hardwood products, and (2) the ‘price premium’ consumers would be willing to pay for a certified oak shelving board. Further, we test how demographics influence market participation and the price premium. Results were obtained through a telephone survey of 811 Pennsylvania residents. Overall, 42.2% supported certification and were willing to pay higher prices for certified products, 45.5% supported certification but were not willing to pay higher prices, and 11.3% did not support certification regardless of costs. The profile of those most likely to participate in a certified wood product market includes nonhomeowners, female, college-educated, recyclers, and previous purchasers of environmentally labeled nonwood products. Among those supporting certification and willing to pay a premium, consumers were willing to pay $10.18 above the cost of an uncertified board ($28.80).
Jensen, Kimberly L., Paul M. Jakus, Burton C. English, and Jamey Menard. 2003. “Market Participation and Willingness to Pay for Environmentally Certified Hardwood Products.” Forest Science, 49(4):632-641.