Economics Research Institute Study Paper
Utah State University Department of Economics
Copyright for this work is held by the author. Transmission or reproduction of materials protected by copyright beyond that allowed by fair use requires the written permission of the copyright owners. Works not in the public domain cannot be commercially exploited without permission of the copyright owner. Responsibility for any use rests exclusively with the user. For more information contact the Institutional Repository Librarian at firstname.lastname@example.org.
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 $29 shelf, a $200 chair, and an $800 table) we fmd the estimated market premiums to be 12.9%, 8.5%, and 2.8%, respectively.
Jensen, Kimberly L. and Jakus, Paul M., "Consumers' Willingness to Pay for Eco-Certified Wood Products" (2003). Economic Research Institute Study Papers. Paper 261.