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  • CONSUMER PREFERENCE FOR ALTERNATIVE MILK PACKAGING: THE CASE OF AN INFERRED ENVIRONMENTAL ATTRIBUTE

  • CLINTON L. NEILL, RYAN B. WILLIAMS
  • Journal:
    Journal of Agricultural and Applied Economics / Volume 48 / Issue 3 / August 2016
    Published online by Cambridge University Press:
    13 September 2016, pp. 241-256
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  • Ecolabeling allows firms to segment a market by informing consumers about unobservable attributes of a product. Previous studies evaluate consumer preferences for products explicitly labeled as possessing positive environmental attributes. This research evaluates consumers’ willingness to pay for a product that is perceived by the consumer as having environmentally friendly attributes. We explore glass packaging for fluid milk as a case study. Data were collected through a contingent valuation survey, and a bound-and-a-half logit model was employed. The estimated premium is 59.78 cents with a premium between $0.73 and $0.92 for consumers more likely to prefer the glass alternative.