Determinants of Participation versus Consumption in the Nordic Swan Eco-labeled Market

Keith Brouhle and Madhu Khanna

No 19443, 2005 Annual meeting, July 24-27, Providence, RI from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This paper uses data on purchases of Nordic Swan Eco-labeled toilet paper and paper towels by individual Danish households to analyze the determinants of demand for eco-labeled goods and the decision process underlying it. Among several models that are estimated, a double-hurdle model that distinguishes between factors influencing the discrete decision to participate by purchasing an eco-labeled good and the continuous decision about the quantity of the eco-labeled good to be purchased is found to fit the data best. We find that prices as well as consumer tastes and preferences, proxied by their socio-demographic characteristics, have a much stronger impact on the participation decision than on quantity consumed for both Swan-labeled toilet paper and paper towels. The quantity consumed of Swan-labeled goods, on the other hand, is strongly affected by factors such as availability of Swan goods in shops, discount sales on Swan goods, and household size.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 39
Date: 2005
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Journal Article: Determinants of participation versus consumption in the Nordic Swan eco-labeled market (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea05:19443

DOI: 10.22004/ag.econ.19443

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