CONSUMER PREFERENCE FOR ALTERNATIVE MILK PACKAGING: THE CASE OF AN INFERRED ENVIRONMENTAL ATTRIBUTE. (13th September 2016)

• Record Type: Journal Article
• Authors: NEILL, CLINTON L.; WILLIAMS, RYAN B.
• Is Part Of: Journal of agricultural and applied economics. Volume 48:Number 3(2016)
• Page Start: 241
• Page End: 256
• Publication Date: 2016-09-13
• Subjects: Contingent valuation, -- environmental attributes, -- fluid milk, -- glass packaging; Q51, -- Q13, -- D12; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2016.17
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: Ecolabeling allows firms to segment a market by informing consumers about unobservable attributes of a product. Previous studies evaluate consumer preferences for products explicitly labeled as possessing positive environmental attributes. This research evaluates consumers' willingness to pay for a product that is perceived by the consumer as having environmentally friendly attributes. We explore glass packaging for fluid milk as a case study. Data were collected through a contingent valuation survey, and a bound-and-a-half logit model was employed. The estimated premium is 59.78 cents with a premium between $0.73 and $0.92 for consumers more likely to prefer the glass alternative.