Abstract
This study applies data from a web-based survey conducted in mainland China to examine the determinants of consumers’ willingness to pay (WTP) for seven different product categories awarded with China Environmental Label and com- pare the mean WTP estimates among these categories. The Interval Regression method is used for estimation. The results indicate that Chinese consumers who regard environmental conservation as being more important than life convenience, who believe purchasing the eco-labeled products is good for the environment, and who have the experience in purchasing eco-labeled products are willing to pay more for those products with environmental label or eco-label. In addition, socio-demographic characteristics such as gender, age, education and household income are found to be important factors to affect Chinese consumers’ WTP amounts. Finally, the results of pair-wise comparison among the mean WTP estimates of various eco-labeled products indicate that most of them are different, which implies that the degrees of Chinese consumers’ willingness to pay extra money for China Environmental Label are different based on the types of products.
Highlights
Environmental labels or eco-labels have been used for over twenty years to provide consumers information about a product which is characterized by improved environmental performance and efficiency compared with similar products
This study applies data from a web-based survey conducted in mainland China to examine the determinants of consumers’ willingness to pay (WTP) for seven different product categories awarded with China Environmental Label and compare the mean WTP estimates among these categories
The results indicate that Chinese consumers who regard environmental conservation as being more important than life convenience, who believe purchasing the eco-labeled products is good for the environment, and who have the experience in purchasing eco-labeled products are willing to pay more for those products with environmental label or eco-label
Summary
Environmental labels or eco-labels have been used for over twenty years to provide consumers information about a product which is characterized by improved environmental performance and efficiency compared with similar products. With respect to the issue of the determinants of consumers’ WTP for eco-labeled products, economists and psychologists have developed a number of factors (e.g., consumers’ environmental concern, perceived consumer effectiveness, faith in others, perceived compromise, and consumers’ socio-demographic characteristics, etc.) Previous studies on these factors can be found in [12,13,14,15]. The current study uses contingent valuation (CV) techniques to investigate the determinants of consumers’ WTP for seven product categories (i.e., furniture, appliance, building material, glass tableware, recycled paper, battery, and soft drink) awarded with China Environmental Label and compare the mean WTP estimates among these categories1 Note that these products are quite different in both their effect on the environment and price level.
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