Printer Friendly

Effects of Eco-Label Knowledge on Chinese Consumer Preferences for Certified Wood Flooring: A Case Study in Chongqing City.

China is the world's largest wood flooring market. In 2017, the country's production and consumption of wood flooring both exceeded 500 million square meters (State Forestry Administration of China 2018). In addition, the floor space of sold residential buildings increased from 600 to 1,400 million square meters between 2008 and 2017 (National Statistics Bureau of China 2018). This growth in the market for residential buildings implies an increasing demand for floor materials. In contrast, with intensifying environmental pressures and rising awareness of environmental conservation, Chinese consumers have increased their intentions to purchase environmentally friendly products (Wei et al. 2017). The widespread use of ecolabeled wood flooring is an important step in promoting environmental sustainability in China.

This study focuses on Forest Stewardship Council (FSC)-and China Environmental Labeling (CEL)-labeled wood flooring. The FSC label is the most well-known among forest certification labels, and CEL among environmental certification labels in China (Wang 2013, Luo et al. 2017). The FSC label is issued by a third-party organization that considers forest conservation a priority and confirms that the wood material comes from sustainably managed forests and can be traced throughout the supply chain (FSC 2019). Globally, 199 million hectares of forest have been certified, and 33,759 chain of custody (CoC) certificates have been issued by the FSC as of April 2018. The vast majority of FSC-certified forests stand in Europe and North America, making up 84 percent of worldwide FSC-certified forests. China has 1 million hectares of FSC-certified forests, and 5,600 FSC CoC certificates have been issued (FSC 2018). To date, some large purchasers of wood (e.g., IKEA Group, B&Q, and Home Depot) have committed to stocking FSC-labeled wood products around the world (Teisl 2003, Anderson 2004). The CEL label is issued by the China Certification Committee for Environmental Labeling Products (Shen 2008). Environmental certification considers industrial environmental management a priority (International Organization for Standardization [ISO] 2019; ISO 14001:2015). The label guarantees that the product has had limited negative effects on the environment and human health from the manufacturing process through to end use (Ministry of Environmental Protection of China 2010). Therefore, the widespread use of FSC-labeled wood flooring supports sustainable forest management, and the use of CEL-labeled wood flooring promotes industrial energy conservation and emission reduction performance in China.

A number of previous studies have shown that consumers' socioeconomic status has an influence on consumer preferences for eco-labeled wood products in China. For instance, education and income have had positive impacts, and women have had higher intentions to buy those products than men (Peng 2015, Liu et al. 2016, Luo et al. 2017). Otherwise, Peng (2015) showed that the budget for wood flooring affected Chinese consumers' price premium (PP) for low-carbon flooring. The effect of eco-label knowledge on consumer preferences has been examined in various foreign countries, but few studies have been conducted in China. For instance, Veisten (2007) showed that eco-label knowledge affected consumers' PP for wood furniture in England and Norway. Shoji et al. (2014) suggested that knowledge of the FSC label affected consumers' PP for wood interior materials in Japan. Teisl et al. (2003) compared US consumer preferences for FSC-labeled wood products and US Environmental Protection Agency (EPA)-certified labeled wood products and showed that consumers consider the EPA label to be more important than the FSC label due to an absence of knowledge about the FSC label.

Above all, the study tried to understand whether knowledge of the eco-label affects consumer preferences in China, because it might be a key factor to increase the consumption of eco-labeled wood flooring in China. The aims of the study are to (1) assess consumers' knowledge of the FSC label, purchase intention (PI), and PP for FSC-labeled wood flooring (PI-FSC and PP-FSC); (2) assess consumers' knowledge of the CEL label, PI, and PP for CEL-labeled wood flooring (PI-CEL and PP-CEL); (3) identify the impacts of eco-label knowledge on PP; and (4) predict the growth of PP through raising consumers' eco-label knowledge.

Literature Review

Many studies have assessed consumers' PI and PP for FSC-labeled wood products around the world (e.g., Ozanne and Vlosky 1997, Cai and Aguilar 2013, Shoji et al. 2014, Testa et al. 2015). These studies showed that consumers in the United States intended to pay a PP ranging from 4.4 to 18.7 percent of noncertified basic prices. Veisten (2007) compared English and Norwegian IKEA customers' PP for eco-labeled wood furniture, and showed the mean of PP was 7.5 percent in England and 6 percent in Norway. However, few studies have been conducted in the Chinese context. Wang (2013) showed that 98 percent of consumers in Zhejiang and Jiangsu provinces intended to buy FSC-labeled wooden furniture, 24 percent of them intended to pay a 1 to 5 percent PP, and the remainder would only pay the same price as a conventional product. Luo et al. (2017) revealed that 29 percent of Chinese consumers did not mind paying a PP ranging from 10 to 30 percent for a certified wood product. Additionally, some studies suggested that Chinese consumers preferred forest-certified products, although the FSC certification was not specifically investigated. For instance, Liu et al. (2007) showed that consumers in Beijing intended to pay a 10 percent PP for a forestcertified bedside table, whereas 61 percent of consumers in Shanghai intended to pay 5 to 15 percent PP for a certified wood product (Wang et al. 2011). However, those studies did not clarify the effects of the knowledge of the FSC label on consumers' PI and PP. Moreover, few studies have assessed Chinese consumers' preferences for CEL-labeled wood products.

Methods

Study site

Chongqing is a major city in southwest China, with a total area of 51,203 [km.sup.2] and a population of over 31 million. Chongqing has the highest number of residential buildings sold in China over the past decade (National Statistics Bureau of China 2016). Thus, understanding Chongqing consumers' preferences is critical for the successful development of eco-labeled wood flooring in the Chinese market. In order to observe consumers of different socioeconomic status, we chose markets for two different grades of wood flooring. One was Easyhome, a high-level building material chain operating in Yubei District, and the other was Jan-Mart, a local market in Jiangbei District.

Survey design and data collection

A questionnaire was designed to assess consumer PI and PP regarding FSC- and CEL-labeled wood flooring in Chongqing City. The questionnaire contained three sections. The first section focused on collecting prepurchase information on the respondent, including wood flooring type, budget, purchase amount, and their environmental concerns about the product. The second section presented FSC and CEL labels to respondents (Fig. 1) and asked them to demonstrate their level of knowledge for each label by specifying "know well," "somewhat familiar," "seen before," and "never saw." We also asked respondents whether they had intentions to buy FSC-labeled wood flooring compared with conventional wood flooring. In the same way, respondents were asked to indicate their intentions for the CEL-labeled wood flooring. Then, those respondents with intentions to buy eco-labeled wood flooring were asked for their PP on a scale of 0 to 100 at intervals of 10 CNY/[m.sup.2]. The final section gathered respondents' demographic information, including gender, age, education, and annual household income.

Data were collected from Chongqing citizens planning to purchase wood flooring. To find our relevant respondents, we approached market visitors about this survey. Visitors who agreed to participate in the survey were then asked whether they had plans to buy wood flooring. Only those who had plans to buy wood flooring were offered a questionnaire. Pretest surveys (n = 59) were conducted in both target markets (Easyhome and Jan-Mart) between February 22 and February 24, 2018. The results showed that respondents fully understood all questions and had a wide range of budgets, incomes, and PP. The pretest questionnaire was, therefore, retained for this study. Between March 8 and March 20, 2018, a total of 419 consumers agreed to participate in the survey, of whom 49 had no plans to purchase wood flooring. A total of 370 responses were collected through face-to-face questionnaires in the markets, of which 367 (88%) were valid samples (178 samples in Easyhome and 189 samples in Jan-Mart market; three incomplete responses omitted) and used in the analysis. Detailed descriptions of variables are given in Tables 1 and 2. Of 367 valid respondents, males comprised 47 percent, and over 70 percent of respondents were aged between 31 and 50 years old. Our respondents had a relatively high educational level with over half of them having a 3-year college certification or above. This means that our respondents experienced higher education than average citizens in Chongqing, where only 7 percent of people have such certification (Chongqing Statistics 2010). Finally, with regard to annual household income, 52 percent of respondents indicated their income to be 50,000 to 200,000 CNY/yr. The average annual income per capita in Chongqing was 70,889 CNY/yr in 2017 (Chongqing Statistics 2018). Supposing household income of a single person or married couple would be between 70,000 and 140,000 CNY/yr, over half of our respondents' income range is included in the average income level in Chongqing.

Measurement of PP-contingent valuation method

The contingent valuation (CV) is a method of estimating the value that a questionnaire respondent places on a product depending on a specific hypothetical scenario (Carson 2007). This approach asks people to directly report their PP to obtain a specified product, rather than inferring the PP from observed behaviors in the market. In environmental economics, the CV method has been widely used for measuring consumers' PP for certified wood products (e.g., Ozanne and Vlosky 1997, Donovan and Nicholls 2003, Wan et al. 2018). The CV method has an advantage of making marketers and policymakers understand consumers' responses to novel goods, which are not available to predict those demands in an actual market (Sriwaranun et al. 2015).

Some studies showed a concern about the ability of the CV method to measure the real PP for environmentally friendly products (e.g., Johansson 1987, Neil 1999, Frykblom 2000). Neil et al. (1994) found that hypothetical values of PP significantly exceeded real values. However, Johannesson et al. (1997) failed to find evidence of hypothetical bias in a similar experiment. Other studies (e.g., List and Shogren 1998, Nestor and Podolsky 1998, Botelho and Pinto 2002) showed that there was no significant difference between hypothetical and real PP when questionnaire and field observation studies' responses were collected from the same respondents. In this study, following Nestor and Podolsky (1998), List and Shogren (1998), and Botelho and Pinto (2002), we measured PP for eco-labeled wood flooring using a questionnaire survey, CV method.

Data analyses

Data analysis was divided into three steps. First, we investigated the descriptive statistics of respondents. Second, we identified influential factors for PI using probit regression with continuous endogenous regressors (IV-Probit model) (Newey 1987). Similarly, we identified influential factors for PP using tobit regression with continuous endogenous regressors (IV-Tobit model). The following influential factors in IV-Probit and IV-Tobit models were considered: purchase amount, budget, environmental concern, gender, age, and knowledge levels of CEL and FSC labels. Dummy variables presented each knowledge level, including "know well," "somewhat familiar," and "seen before." Considering that a consumer's budget for wood flooring is related to his or her income, the budget was assumed as an endogenous variable, and the annual household income was used as an instrument in the IV-Probit and IV-Tobit models. A total of 92 samples were eliminated in the regression analyses because respondents had not disclosed their annual household income. Finally, we predicted the growth in PP for FSC-labeled wood flooring as an enhanced knowledge of the FSC label based on IV-Tobit model results. Student's t test was used to examine the significant differences of PP in the knowledge levels regarding the FSC label.

Results and Discussion

FSC-labeled wood flooring

Knowledge of the FSC label. PI, and PP.-Twenty-one percent of respondents indicated that they knew about the FSC label (6% claimed to "know well" and 15% claimed to be "somewhat familiar"). Eighteen percent of respondents indicated that they had only seen the FSC label before, but did not know what the label meant. Nearly 60 percent of respondents first encountered the FSC label during this survey (Fig. 2). The result was close to the finding of Luo et al. (2017), which revealed that 19 percent of respondents knew about the FSC label. However, it was higher than the result of Wang (2013), which claimed that only 2 percent knew about the FSC label, suggesting that awareness of the FSC label is increasing over time in China.

Sixty-five percent of respondents intended to buy FSC-labeled wood flooring instead of flooring without an eco-label (Table 1). This result was lower than those in the studies of Wang (2013) and Liu et al. (2016). We only displayed the FSC label to respondents and then asked their intentions. Because the majority of them saw the FSC label for the first time in the survey, it was difficult for them to acknowledge the label related to forest conservation from its logo design, which led to low purchase intentions for the labeled products. In contrast, prior studies directly informed respondents of the objectives of forest certification. This finding implied that Chinese consumers have acknowledged the importance of sustainable forest management. However, lack of knowledge regarding the label might stop them from purchasing forest-certified products. On the other hand, we found that the number of respondents with intentions to purchase FSC-labeled wood flooring was greater than the number who knew the FSC label. It suggests that Chinese consumers preferred an eco-labeled product to a nonlabeled product, even though they did not know what the label meant. There were two reasons we considered. One was that respondents had a positive image of the FSC logo design, especially when they saw the label along with the CEL label in the survey. Thus respondents might assume the concept of the FSC label was similar to the CEL label, which motived them to purchase the FSC-labeled product. In an actual market, there are lots of products with multiple certification labels; thus, consumers were able to see those two labels on a product. The other one was that our respondents did not put the PP into consideration when they were asked to make a purchase preference between the wood flooring with the FSC label and the one without a label. We found that 63 out of 93 respondents without the knowledge of the FSC label indicated a PP-FSC ranging between 0 and 40 CNY/[m.sup.2], 12 of whom only indicated a 0 CNY/[m.sup.2] PP, which was less than the mean PP-FSC of 41 CNY/[m.sup.2] measured in the study (Table 1). It indicates that Chinese consumers had a strong preference for an eco-labeled product; however, to make them have a higher PP acceptance for the eco-labeled product, raising their knowledge of the label was important.

The mean PP-FSC was 41 CNY/[m.sup.2] in Chongqing, which equaled 17 percent of respondents' reported budgets for wood flooring (Table 1). The PP was close to the finding of Luo et al. (2017) but higher than the values found by Liu et al. (2007), Wang et al. (2011), Wang (2013), and Liu et al. (2016). One explanation is that income in China is increasing over time, allowing the ability to pay a higher PP. Another explanation is that the respondents were potential buyers of the wood flooring. The purchase demand might motivate them to indicate a higher PP than people without purchase needs. We supposed that PP was lower than the previous results because Cai and Aguilar (2013) revealed that PP for a frequently purchased product with forest certification was higher than for a low-purchase-frequency item, such as wood flooring. However, the results were contrary to our expectation. Accordingly, Chinese consumers' PP on a certified wood product might have few effects that differ between durable and nondurable goods.

Effect of FSC label knowledge on PI and PP for certified wood flooring.-The results of the IV-Probit model are shown in Table 3. A Wald test of exogeneity rejected null hypothesis (P = 0.032); it suggests that the budget was not an exogenous variable. According to the results, there were statistically significant relationships between Pl-FSC and respondents' knowledge levels (i.e., "know well," "somewhat familiar," and "seen before") of the FSC label and their budget. The positive coefficients of those knowledge levels indicate that compared with consumers who did not know the FSC label, consumers who had seen the label or knew the label had a greater intention to purchase the sustainably managed wood products. It follows the previous findings of Rahbar and Wahid (2011) and Paletto and Notaro (2018), and suggests that enhancing consumers' knowledge of the FSC label is an important way to motivate consumers' intentions to purchase the sustainably managed wood products in China.
Figure 2.--Respondents' levels of knowledge about the Forest
Stewardship Council (FSC) and China Environmental Labeling (CEL) labels.

Respondents (%)
            Know well   Somewhat familiar   Seen before   Never saw

FSC label    7%         16%                 18%           59%
CEL label   24%         24%                 26%           26%

Note: Table made from bar graph.


The IV-Tobit model results are shown in Table 4. The Wald test of exogeneity rejected null hypothesis (P = 0.006); it suggests that the budget was not an exogenous variable. According to the results, there were statistically significant relationships between PP-FSC and respondents' knowledge levels (i.e., "know well," "somewhat familiar," and "seen before") of the FSC label, budget, and their purchase amount of wood flooring. The positive coefficients of the knowledge levels indicate that compared with consumers who did not know the FSC label, consumers who had seen the label or knew the label were willing to pay a higher PP for the sustainably managed wood products. This finding was supported by previous findings (e.g., Ladenburg and Martinsen 2004, Rahbar and Wahid 20ll, Cai et al. 2017, Paletto and Notaro 2018). Moreover, we are surprised to find that the effect of purchase amount fills the gap in previous studies on consumer preference for the wood flooring in China and specifies the importance of considering the purchase amount effect in the wood flooring market.

CEL-labeled wood flooring

Knowledge of the CEL label, PI, and PP.-The results showed that 46 percent of respondents knew the CEL label, and half of them claimed to "know well." Twenty-six percent of respondents indicated that they had seen the CEL label before, but did not know what the label stands for. The remaining 28 percent first encountered the CEL label in our survey (Fig. 2). The result was close to the result of Luo et al. (2017), which showed that 57 percent of respondents knew the CEL label, but was lower than the finding of Wang (2013), which showed that 70 percent of respondents knew the CEL label in Jiangsu and Zhejiang provinces of China. It is reported that the average educational level in Jiangsu and Zhejiang provinces is higher than that in Chongqing (United Nations Development Programme 2016); thus, we considered education to have an influence on Chinese consumers' knowledge of the CEL label, which aligns with Tikka et al. (2000).

Eighty-one percent of the respondents intended to buy CEL-labeled wood flooring with a mean PP-CEL of 44 CNY/[m.sup.2], which equaled 19 percent of their budget for wood flooring (Table 1). Compared with the FSC-labeled wood flooring, consumers' PI and PP for the CEL-labeled wood flooring were high versus nonlabeled wood flooring. We considered that this was because Chinese consumers highly recognized the CEL label, although the functions of those two certifications were different.

Effect of CEL label knowledge on PI and PP for certified wood flooring.-The IV-Probit model result showed that the knowledge levels of the CEL label (i.e., "know well," "somewhat familiar," and "seen before") affected PI (Table 3). In interviews, 22 respondents mentioned worries about excessive chemical residues (e.g., formaldehyde) in the engineered and laminate wood flooring, which incentivized them to purchase the CEL-labeled product for its guarantee of health safety. However, the budget did not show a significant effect. In this case, consumers placed higher priority on health impacts than on the price of wood products regarding purchasing an environmentally-certified product.

The results of IV-Tobit model are shown in Table 4. The Wald test of exogeneity rejected null hypothesis (P = 0.029); it suggests that the budget was not an exogenous variable. According to the results, the knowledge of the CEL label did not have a significant influence on the PP. Instead, purchase amount and budget of wood flooring positively affected it. This finding indicated that consumers' economic status played a main role in the purchase behaviors for an environmentally-certified product, which is in line with Peng (2015). The strategy of raising consumers' eco-label knowledge, which was adapted to increase the PP-FSC, was not suitable for promoting the CEL-labeled wood flooring in China. In the interviews, 14 respondents stated that they knew of the CEL label through media coverage of its falsification by certain manufacturers. Concerns about fake CEL labeling may have a negative impact on consumers' PP. Consumers' credibility for an eco-label influences their PP for an environmentally-friendly product, which was supported by the studies of Vlosky et al. (1999), Ozanne and Vlosky (2003), and O'Brien and Teisl (2004). Otherwise, the CEL label is managed by the Chinese government. Lin and Kim (2017) showed that consumers trusted a third-party certification more than a governmental certification. Although we did not assess consumers' trust of the eco-labels in the survey, it still could be considered a reason why knowledge of the FSC label affected the PP, whereas knowledge of the CEL label did not.

Predicted PP at each level of knowledge on FSC label

For a deep understanding of the relationship between PP and knowledge of the FSC label, we predicted the mean of PP-FSC at each knowledge level of the FSC label using the following equations:

[mathematical expression not reproducible] (1)

[mathematical expression not reproducible] (2)

[mathematical expression not reproducible] (3)

[mathematical expression not reproducible] (4)

P[P.sub.Know] indicates the mean PP-FSC when all the respondents claimed to "know well." In the same way, [PP.sub.Familiar], P[P.sub.Seen], and P[P.sub.Unknown] indicate the mean PP-FSC when respondents chose "somewhat familiar," "seen before," and "never saw," respectively. The remaining variables in the equations indicate the sum of the total respondents' values for each variable. The numbers 21.77, 18.60, and 18.10 in Equations 1 to 3 are the parameters of knowledge levels in the IV-Tobit model (Table 4).

The results showed that the mean PP-FSC was on the rise with a higher knowledge level of the FSC label; these values were 36, 50, 51, and 53 CNY/[m.sup.2] for "never saw," "seen before," "somewhat familiar," and "know well," respectively (Fig. 3). 7" test results showed a significant difference in PP existed between "never saw" and "seen before" (t = -3.4294, sig. < 0.000), "somewhat familiar" (t = -3.4294, sig. < 0.000), and "know well" (t =-2.783, sig. = 0.003), respectively.

This finding suggests that enhancing consumers' knowledge of FSC label to the "seen before" level was an important step in increasing the PP for forest-certified products in China. Because of the great increase of PP-FSC from "never saw" to "seen before" knowledge level, we considered an effect of label design on the PP. As mentioned in "FSC-labeled wood flooring," due to the lack of information on the FSC label, it can be difficult for consumers who first encounter the label to link it with forest conservation. Teisl (2003) exhibited that the detailed environmental information displayed on the label positively affects consumers' purchasing behaviors. Hence, providing specific environmental information on the forest-certified products is necessary in the Chinese market.

Conclusions

This study showed that knowledge about the FSC label influenced consumers' intentions of purchasing forest-certified products and paying its PP in China. While knowledge of the CEL label had an impact on consumers' intentions of purchasing environmentally-certified products, it did not affect its PP. Therefore, the strategy of raising eco-label knowledge for increasing consumers' PP of an environmentally-friendly wood product is not suitable for all kinds of eco-labels. The main advantage of this study is that it considers the PP under the different knowledge levels of the FSC label and suggests that raising consumers' knowledge to the "seen before" level helps achieve a significant increase in the PP.

Acknowledgment

This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

Literature Cited

Anderson. R. C. 2004. An analysis of consumer response to environmentally certified, ecolabeled forest products. PhD dissertation. Oregon State University. Corvallis.

Botelho. A. and L. C. Pinto. 2002. Hypothetical, real, and predicted real willingness to pay in open-ended surveys: Experimental results. Appl. Econ. Lett. 9(15):993-996.

Cai, Z. and F. X. Aguilar. 2013. Meta-analysis of consumer's willingness-to-pay premiums for certified wood products. J. Forest Econ. 19:15-31.

Cai, Z., Y. Xie, and F. X. Aguilar. 2017. Eco-label credibility and retailer effects on green product purchasing intentions. Forest Policy Econ. 80(April):200-208.

Carson. R. T. 2007. Contingent Valuation: A Comprehensive Bibliography and History. Edward Elgar Pub. Ltd. Cheltenham, UK. 464 pp.

Chongqing Statistics. 2010. The status quo of labor force in Chongqing City, http://www.cqtj.gov.cn/uploadfilc/20100925090105171.pdf. Accessed February 26. 2019. (In Chinese.)

Chongqing Statistics. 2018. The average wage of employed persons in urban non-private units in Chongqing is 70.889 yuan in 2017. http://www.cqtj.gov.cn/tjsj/shuju/tjgb/201805/t20180525_449433.htm. Accessed Feburary 26. 2019. (In Chinese.)

Donovan. G. II. and D. L. Nicholls. 2003. Estimating consumer willingness to pay a price premium for Alaska secondary wood products. Research Paper PNW-RP-553. US Department of Agriculture Forest Service. Pacific Northwest Research Station. Portland. Oregon. 7 pp.

Forest Stewardship Council (FSC). 2018. Forest Stewardship Council facts and figures. https://ic.fsc.org/en/facts-and-figures. Accessed July 4, 2018.

Forest Stewardship Council (FSC). 2019. FSC certification, https://ic.fsc.org/en/what-is-fsc-certification. Accessed March 6, 2019.

Frykblom, P. 2000. Willingness to pay and the choice of question format: Experimental results. Appl. Econ. Lett. 7:665-667.

International Organization for Standardization (ISO). 2019. International Organization for Standardization: ISO 14001:2015. https://www.iso.org/obp/ui/#iso:std:iso: 14001 :ed-3:vl:en. Accessed February 25, 2019.

Johannesson, M., B. Liljas, and R. M. O'Conor. 1997. Hypothetical versus real willingness to pay: Some experimental results. Appl. Econ. Lett. 4:149-151.

Johansson, P. O. 1987. The Economic Theory and Measurement of Environmental Benefits. Cambridge University Press, Cambridge. UK.

Ladenburg, J. and L. Martinsen. 2004. Danish consumers' willingness to pay for certified wood products--A contingent ranking study. Paper from Department of Economics and Natural Resources. Social Science Series No. 14. The Royal Veterinary and Agricultural University. Frederiksberg. Denmark.

Lin, Y. and K. Kim. 2017. Willingness to pay for government-certified agri-products in South Korea. J. Consum. Cult. 4:139-160.

List, J. A. and J. F. Shogren. 1998. Calibration of the difference between actual and hypothetical valuations in a field experiment. J. Econ. Behav. Organ. 37(2): 193-205.

Liu. R.. X. Li. and Y. Zhang. 2016. Analysis of consumers' willingness to pay for wood floor products with forest certification. Res. Dev. Market 32:453-458. (In Chinese.)

Liu, Y.. M. Tian. and F. Ruan. 2007. Investigate and analysis on the consumer willingness to pay for products of forest certification, In: Proceedings of the 2nd Chinese Forum on Forestry Economic Development Theory and Practice, June 11, 2007, Fuzhou City, China; Problems of Forestry Economics. Jianguo Zhang, pp. 82-85. (In Chinese.)

Luo, D., Z. Zhang, Y. Chen, and S. Gu. 2017. Research on the identification and consumption tendency of green wood process. China Forest Eton. 2:26-31. (In Chinese.)

Ministry of Environmental Protection of China. 2010. Technical requirement for environmental labeling products-Wood-based panels and finishing products, http://kjs.mee.gov.cn/hjbhbz/bzwb/other/hjbz/201005/t20100511_189366.shtml. Accessed September 13, 2018. (In Chinese.)

National Statistics Bureau of China. 2016. National data for Chongqing. http://data.stats.gov.cn/easyquery.htm?cn=E0105. Accessed August 7. 2018. (In Chinese.)

National Statistics Bureau of China. 2018. National data for floor space of resident housing sold, http://data.stats.gov.cn/easyquery.htm?cn=E0105. Accessed August 7, 2018. (In Chinese.)

Neil, H. R. 1999. Hypothetical versus real willingness to pay: Comment. Appl. Earn. Lett. 6:267-269.

Neil, H. R., R. G. Cummings, P. Ganderton. G. W. Harrison, and T. McGuckin. 1994. Hypothetical surveys and real economic commitments. Land Econ. 70:145-154.

Nestor, D. V. and M. J. Podolsky. 1998. Assessing incentive-based environmental policies for reducing household waste disposal. Contemp. Econ. Policy 16(4)401-411.

Newey, W. K. 1987. Efficient estimation of limited dependent variable models with endogenous explanatory variables. J. Econometrics 36:231-250.

O'Brien, K. A. and M. F. Teisl. 2004. Eco-information and its effect on consumer values for environmentally certified forest products. J. Forest Econ. 10:75-96.

Ozanne, L. K. and R. P. Vlosky. 1997. Willingness to pay for environmentally certified wood products: A consumer perspective. Forest Prod. J. 47:39-48.

Ozanne, L. K. and R. P. Vlosky. 2003. Certification from the US consumer perspective: A comparison from 1995 and 2000. Forest Prod. J. 53:13-21.

Paletto, A. and S. Notaro. 2018. Secondary wood manufacturers' willingness-to-pay for certified wood products in Italy. Forest Policy Econ. 92:65-72.

Peng, W. 2015. A study of PP and its influencing factors of consumer carbon-wood forest products-Based on carbon labeling bamboo (wood) flooring scenario simulation data. Dissertation. Zhejiang Agriculture and Forestry University, China. (In Chinese.)

Rahbar. E. and N. A. Wahid. 2011. Investigation of green marketing tools' effect on consumers' purchase behavior. Bus. Strat. Ser. 12:73-83.

Shen, J. 2008. Understanding the determinants of consumers' willingness to pay for eco-labeled products: An empirical analysis of the China Environmental Label. J. Serv. Sci. Manag. 5:87-94.

Shoji. Y.. N. Nakao, Y. Ueda, H. Kakizawa, and T. Hirai. 2014. Preferences for certified forest products in Japan: A case study on interior materials. Forest Policy Econ. 43:1-9.

Sriwaranun. Y., C. Gan. and M. Lee. 2015. Consumers' willingness to pay for organic products in Thailand. Int. J. Soc. Econ. 42(4)480-510.

State Forestry Administration of China. 2018. China wood flooring industry report, http://www.forestry.gov.cn/xdly/5197/20180404/1089259.html. Accessed November 27, 2018. (In Chinese.)

Teisl, M. F. 2003. What we may have is a failure to communicate: Labeling environmentally certified forest products. Forest Sci. 49:668-680.

Testa, F.. F. Iraldo. A. Vaccari. and E. Ferrari. 2015. Why eco-labels can be effective marketing tools: Evidence from a study on Italian consumers. Bits. Strat. Environ. 24:252-265.

Tikka. P., M. Kuitunen. and S. Tynys. 2000. Effects of educational background on students' attitudes, activity levels, and knowledge concerning the environment. J. Environ. Educ. 31:1219.

United Nations Development Programme. 2016. China sustainable cities report 2016: Measuring ecological input and human development. http://www.cn.iindp.org/content/china/en/homc/library/democratic_governance/the-china-sustainable-cities-report-measuring-ecological-and-hu.html. Accessed February 26. 2019.

Veisten. K. 2007. Willingness to pay for eco-labelled wood furniture: Choice-based conjoint analysis versus open-ended contingent valuation. J. Forest Econ. 13:29-48.

Vlosky, R. P., L. K. Ozanne. and R. J. Fontenot. 1999. A conceptual model of US consumer willingness-to-pay for environmentally certified wood products. J. Consum. Mark. 16(2):122-136.

Wan. M., Y. Zhang, and W. Ye. 2018. Consumer willingness-to-pay a price premium for eco-friendly children's furniture in Shanghai and Shenzhen, China. Forest Prod. J. 68(3):317-327.

Wang. J. 2013. Research on the adaptability and strategy of FSC-COC certificate in Chinese furniture industry. Dissertation. Nanjing Forestry University, China. (In Chinese.)

Wang, J., Z. Xu, Q. Zheng, and S. He. 2011. Analysis on the consumer willingness to pay for products of forest certification. Money China 6:121-122. (In Chinese.)

Wei, J. H" J. Q. Wang, J. T. Xu, H. B. Gao, J. Yang, and Z. B. Lv. 2017. China consumption trends. http://image-src.bcg.com/linages/BCG-Five-Profiles-That-Explain-Chinas-Consumer-Economy-Jime-2017-CHN_tcm55-163226.pdf. Accessed July 21, 2018. (In Chinese.)

The authors are, respectively, Graduate Student, Graduate School of Agric. and Life Sci. (tanqin@anesc.u-tokyo.ac.jp), and Project Researcher, Assistant Professor, and Professor, Asian Natural Environ. Sci. Center (imamura@anesc.u-tokyo.ac.jp, nagasaka@anesc.u-tokyo.ac.jp, masafumi@anesc.u-tokyo.ac.jp [corresponding author]). Univ. of Tokyo, Japan. This paper was received for publication in April 2019. Article no. 19-00017.

doi:10.13073/FPJ-D-19-00017
Table 1.--Description of the variables, mean, and standard deviation
(SD).

Variables (a)  Description                               Mean (SD)

Type           Type of wood flooring: -1 = solid          -0.42 (0.71)
               wood flooring. 0 = engineered wood
               flooring. 1 = laminate flooring
Purchase       Ranging from 30 to 120 at                  64.41 (25.36)
amount         10 [m.sup.2] intervals
Budget         Ranging from 100 to 500 at                261.58 (105.43)
               100 CNY/[m.sup.2] intervals
Environmental  Priority of environmental impacts           4.00 (1.14)
concern        in purchasing wood flooring: 1 = very
               low. 2 = low. 3 = mediocre. 4 = high,
               5 = very high
Knowledge      Consumers' awareness levels of FSC:         1.67 (0.93)
of FSC
               1 = never saw (a respondent did
               not know).
               2 = seen before (a respondent had seen
               only).
               3 = somewhat familiar (a respondent knew
               partly).
               4 = know well (a respondent was familiar
               with)
Knowledge      Consumers' awareness levels of CEL:         2.43 (1.11)
of CEL
               1 = never saw (a respondent did
               not know),
               2 = seen before (a respondent had
               seen only),
               3 = somewhat familiar (a respondent
               knew partly),
               4 = know well (a respondent was
               familiar with)
PI-FSC         Intend to purchase FSC certified            0.65 (0.48)
               wood flooring: 1 = yes, 0 = no
PI-CEL         Intend to purchase CEL certified wood       0.81 (0.40)
               flooring: 1 = yes, 0 = no
PP-FSC         A price premium for FSC ranging from       43.60 (27.80)
               0 to 100 at 10 CNY/[m.sup.2] intervals
PP-FSC (%)     PP-FSC/budget x 100%                       16.98 (13.71)
PP-CEL         A price premium for CEL                    47.64 (28.47)
               ranging from 0 to 100 at 10
               CNY/[m.sup.2] intervals
PP-CEL (%)     PP-FSC/budget x 100%                       18.62 (12.71)

(a) FSC = Forest Stewardship Council; CEL = China Environmental
Labeling: PI = purchase intention; PP = price premium.

Table 2.-Demographic information of the respondents (n = 367).

                     Description                  Frequency   Percent

Gender               Male                         171          46.6
                     Female                       196          53.4
Age                  <21 yr old                    14           3.8
                     21-30 yr old                  70          19.1
                     31-40 yr old                 160          43.6
                     41-50 yr old                 109          29.7
                     >50 yr old                    14           3.8
Level of education   High school certification    161          43.9
                     or below
                     3-yr college certification    76          20.7
                     Bachelor's degree            115          31.3
                     Master's degree or above      15           4.1
Household income     <50,000                       55          15
(CNY/yr)             50,000-100,000               129          35.1
                     100,000-200,000               62          16.9
                     200,000-400,000               24           6.5
                     >400,000                       5           1.4
                     Unanswered                    92          25.1

Table 3.-Determinants of purchase intention (PI) for Forest Stewardship
Council (FSC)- and China Environmental Labeling (CEL)-labeled wood
flooring, respectively (n = 275). (a)

Independent variables   PI-FSC                  PI-CEL
                        Coefficient (SE)        Coefficient (SE)

Know well                   0.816 (*) (0.361)       1.162 (***) (0.306)
Somewhat familiar           0.596 (*) (0.247)       1.095 (***) (0.281)
Seen before                 0.589 (*) (0.228)       0.964 (***) (0.250)
Purchase amount            -0.006 (0.003)          -0.004 (0.004)
Budget                      0.006 (**) (0.002)      0.002 (0.003)
Environmental concern       0.087 (0.079)           0.127 (0.102)
Gender                      0.007 (0.162)           0.150 (0.202)
Age                         0.035 (0.095)           0.041 (0.113)
Education                   0.030 (0.106)           0.100 (0.126)
Constant                    0.812 (0.514)          -0.920 (0.667)
Log likelihood          -1787.264               -1734.978
Wald [chi square]          39.81                   38.47
Wald test of
exogeneity
  [chi square]              4.60                    0.02
  P value                   0.032                   0.896

(a) (*), (**), and (***) indicate P value levels of 0.1%. 1%. and 5%,
respectively.

Table 4.-Determinants of price premium (PP) for Forest Stewardship
Council (FSC)- and China Environmental Labeling (CEL)-labeled wood
flooring, respectively (n = 275). (a)

                          PP-FSC                  PP-CEL
Independent variables     Coefficient (SE)        Coefficient (SE)

Know well                  21.771 (**) (7.692)      7.572 (5.695)
Somewhat familiar          18.604 (**) (5.545)      5.858 (5.628)
Seen before                18.091 (**) (5.691)      4.475 (5.616)
Purchase amount             0.252 (**) (0.090)      0.171 (*) (0.081)
Budget                      0.234 (***) (0.049)     0.230 (***) (0.050)
Environmental concern      -2.277 (2.123)           1.013 (1.851)
Gender                     -1.130 (4.327)          -5.466 (3.790)
Age                         1.532 (2.743)           1.480 (2.487)
1 ducal ion                -2.412 (2.732)          -2.665 (2.644)
Constant                  -37.542 (15.012)        -31.485 (14.035)
Number of observations    183                     226
Wald [chi square]          61.46                   59.80
Wald test of exogeneity
[chi square]                7.30                    4.78
P value                     0.006                   0.029

(a) (*), (**), and (***) indicate P value levels of 0.1%. 1%. and 5%.
respectively.
COPYRIGHT 2019 Forest Products Society
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Tan, Qin; Imamura, Kohei; Nagasaka, Kenji; Inoue, Masafumi
Publication:Forest Products Journal
Geographic Code:9CHIN
Date:Dec 22, 2019
Words:6196
Previous Article:Thermal Conductivity of Low-Density Wood Composite Mats.
Next Article:Gravity Models of China's Bamboo and Rattan Products Exports: Applications to Trade Potential Analysis.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters