Willingness to Pay for environmental attributes

This thesis investigates the consumers' motivations to buy, and estimation of the willingness to pay for, organic food and the environmental attributes associated with it. These attributes include environment friendliness, animal welfare, low chemical usage, health, and quality, all shown to be significant parameters of social welfare. The thesis estimates results from revealed, stated and combined data, addressing the issues associated with single estimations, above all hypothetical bias, collinearity and endogeneity of attributes, and data scale differences. The true reasons why consumers appreciate environmental attributes, and their driving behaviour, are imperative from a marketing, industry and policy perspectives.