Eco-information and its effect on consumer values for environmentally certified forest products

Abstract

Some sectors of the forest products industry have adopted environmental certification and labeling as a business strategy. Typically, the designation of these products is through the use of eco-seals (environmental ‘seals-of-approval’). For these programs to be effective, consumers must first care about the disclosed information. We find consumers are willing to pay for these products but changes in labeling policy affects their willingness to pay. Thus, there appears to be a demand for environmentally certified forest products, however, the current use of eco-seals may preclude the collection of an actual premium.