Economics Research Institute Study Paper
Utah State University Department of Economics
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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.
Jensen, Kimberly L.; Jakus, Paul M.; English, Burton C.; and Menard, Jamey, "Consumers' Willingness to Pay for Eco-Certified Wood Products" (2004). Economic Research Institute Study Papers. Paper 282.