Files

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.

Details

PDF

Statistics

from
to
Export
Download Full History