Potential Demand for Certified Wood Products in the United Kingdom and Norway
Abstract:Representative samples of the British and Norwegian population were surveyed by telephone and asked to make a hypothetical choice between unlabeled wooden furniture and more expensive eco-labeled wooden furniture. Choice behavior was modeled as a random utility model with utility-theoretic restrictions on choice and estimated willingness to pay (WTP). To counteract upward biased hypothetical values, a followup question assessed the certainty of respondents' choices. For those not choosing the eco-labeled alternative, another followup question assessed if these individuals could be regarded as indifferent.
Compared to the unlabeled wooden furniture with a price of US$332 in the UK and US$275 in Norway, the extra median WTP for the eco-labeled alternative was estimated to be US$5.16 (1.6%) in the UK and US$2.79 (1%) in Norway, with a censored log-logistic binary choice model. In these estimates only the “absolutely sure ” were counted as valid choices of the eco-labeled alternative. The censoring implied that those who indicated indifference between unlabeled and eco-labeled furniture had their estimated WTP adjusted to 0. About 39% of the UK population and 32% of the Norwegian population are predicted to choose the eco-labeled alternative when the price difference is less than 5%. FOR. SCI. 48(4):767–778.
Keywords: Random utility model; eco-labeling; environmental management; forest; forest management; forest resources; forestry; forestry research; forestry science; natural resource management; natural resources; sustainable forestry; willingness to pay
Document Type: Miscellaneous
Affiliations: Researcher Department of Forest Sciences, Agricultural University of Norway, P.O.Box 5044 NO, Norway, 1432 Ås, Phone: +47 64 94 88 80; Fax: +47 64 94 88 90 firstname.lastname@example.org
Publication date: November 1, 2002
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