Date of Award
Winter 2024
Project Type
Dissertation
Program or Major
Natural Resources and Environmental Studies
First Advisor
John Halstead
Second Advisor
Ju-Chin Huang
Third Advisor
Xiaoli Fan
Abstract
This dissertation examines consumer preferences and willingness to pay (WTP) within key sustainability contexts, focusing on the remediation of forever chemicals (PFAS) in municipal water systems, forest diversification for climate-resilient maple syrup production, and reduced ecological footprints in farming. The first chapter highlights factors influencing public support for a municipal water filtration system. A contingent valuation survey was conducted in September 2021 among the New England households to estimate their WTP for PFAS filtration in municipal drinking water systems. Health factors are primary: those concerned about water quality show a higher WTP. Income, water expenditures, and filtration status at home also plays significant role. Political affiliation alone has a limited effect on WTP; however, health concerns significantly amplify differences, with individuals’ willingness to pay to vary based on their political views when health concerns are present. The combined influence of higher education and trust in credible information sources, such as universities, was found to significantly enhance WTP, emphasizing the importance of effective communication strategies. Households with filters or close to contamination sites are more likely to invest further in filtration. There are minor differences in monthly WTP across New England states: Vermont residents average $12.73, Maine $13.07, and New Hampshire $14.10 per month in the bill. On average, New Englanders are willing to spend 0.34% of their monthly income on water filtration. The second chapter examines consumer preferences for lettuce with lower environmental footprints, employing a choice experiment method conducted across the United States in September 2023. The analysis focuses on the importance of reduced nitrogen, water, and land use footprints. These attributes increase utility, reflecting support for controlled environment agriculture (CEA), which typically reduces footprints relative to open agriculture. However, high energy use that is typical of CEA systems lowers the WTP for lettuce, signaling concerns about energy sustainability. Consumers show a significant WTP for sustainable lettuce production practices. Organic lettuce leads, with an additional $1.61 per lb. For water conservation, the incremental WTP is $1.46 for a 95% reduction and $0.90 for an 80% reduction. Nitrogen reduction sees $1.12 for zero use of that fertilizer and $0.95 for 50% use reduction. Efficient land use also matters, with $1.05 for a 90% reduction and $0.98 for a 75% reduction, and higher energy use imposes a discount of $0.32. The interaction between water reduction and high energy use is (0.126), suggests that the negative impact of high energy use may be mitigated by a reduction in water use. Consumers weigh sustainability against energy costs, implying a role for labels that disaggregate and quantify ecological impacts across multiple dimensions. Chapter three focuses on estimating consumer WTP for an alternative tree syrup (birch) relative to the mainstream maple syrup and explores the impact of information about forest diversification benefits on WTP. A Becker-DeGroot-Marschak (BDM) auction in New Hampshire and Illinois conducted in November 2021 reveals that New Hampshire residents exhibit a higher WTP for maple bottle of syrup ($1.47) and birch bottle of syrup (57 cents) compared to Illinois residents. Providing partial information on the benefits of forest diversification increased WTP for birch by $1.10, while full information on syrup type and forest benefits raised WTP by $0.96 for birch. These informational effects on maple syrup were not statistically significant. Additionally, proximity to sugar houses showed no significant influence on syrup preference. These findings reinforce findings in the literature on premiums for eco-friendly products and the influence of environmental information on WTP, but it is one of the first on a specific type of ecological attribute, the climate-resilience of the production system. This effect varies across regions, suggesting that local factors shape consumer attitudes toward eco-friendly products. There is potential for maple forest diversification based on consumer preferences. Effective labeling on ecological benefits could increase support for maple produced from diversified forests. With a high WTP for maple syrup, the private sector might consider blends combining maple syrup’s flavor with the ecological benefits of birch and other tree syrups. Each chapter highlights unique aspects of consumer WTP, influenced by eco-footprints, climate adaptation and resilience, and health-related concerns. They reflect an emerging market trend where consumer preferences for environmentally and health-conscious products potentially foster sustainable consumption patterns across very specific dimensions of environmental sustainability that are currently not captured in the market.
Recommended Citation
Khan, Muhammad Jawad, "THREE ESSAYS ON THE ECONOMICS OF SUSTAINABLE CONSUMER CHOICES" (2024). Doctoral Dissertations. 2889.
https://scholars.unh.edu/dissertation/2889