CONTINGENT VALUATION STUDY ON WILLINGNESS-TO-PAY FOR SUSTAINABLE FOREST PRODUCTS

Abstract

This research study investigates the market and non-market benefits and costs of adopting a forest resources policy aimed at environmentally responsible purchasing at a large university. I use benefit-cost analysis and contingent valuation methods to determine the population's willingness-to-pay (WTP) for environmentally responsible forest products. Econometric analysis reveals that past WTP and belief that the forest resources policy will improve the environment positively affect WTP, while position as a staff member decreases WTP. This methodology can be used for other products that have non-market values like cafeteria compost and by other large purchasing entities such as corporations and government agencies.