Determinants of Willingness to Pay for Green Packaging in Brunei Darussalam

Abstract

Past research has underlined various reasons limiting the use of green packagings, such as the lack of environmental awareness, support, cost concerns, and insufficient enforcement from governments. However, extant literature also indicates growing attention to green packaging usage among consumers. This chapter takes on the later direction by attempting to understand the elements influencing consumers' willingness to pay for green packaging. The chapter proposes five hypotheses where product pricing, quality, design, consumer knowledge, and religiosity influence willingness to pay. The study gathers quantitative data from an online survey conducted in Brunei Darussalam. The chapter uses partial least square structural equation modeling (PLS-SEM) analysis. Results indicate that only the pricing factor significantly influences consumers' willingness to pay for green packaging. Findings from this research add to the body of knowledge about factors influencing consumers' willingness to pay for green packaging and perhaps encourage the switch from conventional to green packaging.