Sunday, November 13, 2016

Egyptian consumers' willingness to pay for carbon-labeled products: A contingent valuation analysis of socio-economic factors

Carbon emissions from products contribute to anthropogenic climate change. Because of the growing concern over the environmental impact of production and consumption of consumer goods, carbon footprint information started to appear on labels of several products. In this paper we use both parametric and non-parametric econometric models in order to estimate Egyptian consumers' willingness to pay (WTP) for carbon-labeled products. Contingent valuation methods based on log-logistic, log-normal and Weibull regression models revealed that consumers in Egypt are willing to pay a price premium of approximately 75 Egyptian pounds (EP) for carbon-labeled products based on the single-bound dichotomous choice (SBDC) model and up to 90 EP based on the double-bound dichotomous choice (DBDC) model. From a socio-economic perspective, results have also revealed that income, age, gender, and educational level have a significant influence on the respondent's WTP. Implications of this study highlight the fact that understanding consumers' preferences for eco-friendly products may play an important role in formulating environmental policy changes to face complex problems as diverse as environmental pollution or global climate change.

by Mohamed M. Mostafa, Gulf University for Science and Technology, West Mishref, Kuwait
Received 9 January 2015, Revised 5 February 2016, Accepted 27 June 2016, Available online 4 July 2016
Journal of Cleaner Production via Elsevier Science Direct
Volume 135, 1; November, 2016; Pages 821–828
Keywords: Carbon-labeled products; Contingent valuation methods; Willingness to pay; Egypt

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