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Market Participation and Willingness to Pay for Environmentally Certified Products

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The purpose of this study is to ascertain (1) consumers' willingness to participate in a market for environmentally certified hardwood products, and (2) the ‘price premium’ consumers would be willing to pay for a certified oak shelving board. Further, we test how demographics influence market participation and the price premium. Results were obtained through a telephone survey of 811 Pennsylvania residents. Overall, 42.2% supported certification and were willing to pay higher prices for certified products, 45.5% supported certification but were not willing to pay higher prices, and 11.3% did not support certification regardless of costs. The profile of those most likely to participate in a certified wood product market includes nonhomeowners, female, college-educated, recyclers, and previous purchasers of environmentally labeled nonwood products. Among those supporting certification and willing to pay a premium, consumers were willing to pay $10.18 above the cost of an uncertified board ($28.80). For. Sci. 49(4):632–641.
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Keywords: Logistic models; environmental management; forest; forest management; forest resources; forestry; forestry research; forestry science; market segments; natural resource management; natural resources

Document Type: Miscellaneous

Affiliations: 1: Professor Department of Agricultural Economics, The University of Tennessee, 302 Morgan Hall, Knoxville, TN, 37996-4518, Phone: 865-974-7481; Fax: 865-974-4829 [email protected] 2: Professor Department of Economics, Utah State University, 3530 Old Main Hill, Logan, UT, 84322-3530, Phone: 435-797-2310 [email protected] 3: Professor Department of Agricultural Economics, The University of Tennessee, 302 Morgan Hall, Knoxville, TN, 37996-4518, Phone: 865-974-7486 [email protected] 4: Research Associate Department of Agricultural Economics, The University of Tennessee, 302 Morgan Hall, Knoxville, TN, 37996-4518, Phone: 865-974-7485 [email protected]

Publication date: 2003-08-01

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    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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    June 1, 2016 to Feb. 28, 2017

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