Are Homeowners Willing to Pay for “Origin-Certified” Plants in Water-Conserving Residential Landscaping?
By: Curtis, Kynda R.; Cowee, Margaret W.
Curtis, Kynda R.; Cowee, Margaret W., Are Homeowners Willing to Pay for "Origin-Certified" Plants in Water-Conserving Residential Landscaping?, Journal of Agricultural and Resource Economics, Volume 35, Issue 1, April 2010, Pages 118-132
This study investigates the value of local origin-labeling for a nonfood product by evaluating Nevada homeowner purchase propensity for “NevadaGrown” native plants for water-conserving residential landscaping. Homeowner survey results illustrate that homeowners may be willing to pay as much as a 14% premium for origin-certified native plants. WTP estimates are higher when uncertain responses are incorporated into the bidding structure. Preferences for local production and drought resistance in plants are the primary drivers of purchasing decisions in the absence of uncertain responses, while income levels and preferences for natural plant appearance additionally affect purchasing decisions when uncertainty is incorporated.