Consumer willingness to pay for eco-labels in China: A choice experiment approach

Abstract

The use of eco-labels has become increasingly popular in China. This study aims to understand whether Chinese consumers are willing to pay for eco-labels and how their willingness to pay (WTP) is determined. Although we find that Chinese consumers are willing to pay more for products that are labeled as having greater energy efficiency (Energy Efficiency Label) or as having been produced using more environmentally-friendly production processes (Environmental Label), some practices have significantly impaired the effectiveness of these labels, e.g. the burgeoning use of eco-labels has led to label confusion; public trust towards eco-labels. The policy implications are discussed in this study.

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