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 email@example.com
Publication date: November 1, 2002
- Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
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