Consumer perceptions of climate change and willingness to pay for mandatory implementation of low carbon labels: the case of South Korea

Abstract

The purpose of this study is to examine consumer values for mandatory carbon labels incorporating South Korean consumers’ perceptions about climate change using conjoint analysis. In a face-to-face consumer survey, we asked about individuals’ perceptions of the impact of climate change on their personal lives to measure its effect on consumer preference for carbon labels. The results of ordered logit and conditional logit regressions showed that a significant preference for mandatory carbon labels reflected Koreans’ level of concern about climate change. As an increasing number of consumers feel the impact of climate change, the gap of willingness to pay between voluntary and mandatory low carbon labels is significant. Also, consumer perception of the impact of climate change on their personal lives was significantly influenced by the area in which the respondents’ lived.