Consumers` Willingness to Pay for Environmental Attributes of a Cut Flower in Ethiopia: A Choice Experiment Approach

Authors : Ahmed Seid HASSEN

Pages : 31-46

View : 15 | Download : 14

Publication Date : 2016-05-20

Article Type : Research Paper

Abstract :The paper aims at valuing consumers` willingness to pay for environmental attributes of a cut ower using choice experiment and hence identifying the presence of a hypothetical market for environmental friendly owers. Considering the local and global environmental impacts of floriculture, two environmental attributes of a cut ower namely, Eco-labeling insert ignore into journalissuearticles values(EHPEA-CP label); and Carbone footprint together with a price attribute were selected for choice experiment. Survey data from 200 randomly selected consumers were employed and two multinomial logit models and a random parameter logit model were used for estimations. The estimated results from all models reveled that respondents had the willingness to pay for both environmental attributes of a cut flower and they were willing to pay 1.98 birr and 10 birr for eco-label and carbon footprint attributes of a cut flower respectively, valuing carbon footprint more than eco-labeling. Based on the welfare estimates, consumers were willing to pay 10.47 birr for a bronze labeled and carbon neutral cut flower; 12.45 birr for a ower with silver brand and medium insert ignore into journalissuearticles values(neutral); carbon footprint and 24.43 birr for brand gold and carbon saving insert ignore into journalissuearticles values(low); flower. Thus, environmental friendly owers may nd a niche market in Ethiopia.
Keywords : Environmental Attributes, Choice Experiment, Willingness to Pay, Cut Flower