Consumer willingness to pay for modern wooden structures: A comparison between China and Japan
Koji Matsushita and
Forest Policy and Economics, 2018, vol. 91, issue C, 84-93
The use of timber materials in construction has a long history in Asian countries, especially China and Japan. Wood, as an eco-friendly construction material, can play an important role in sustainable development. During past decades, the early modern and modern wooden structural industry in Japan has developed rapidly, compared with that in China; this difference is due to the distinct domestic situations of the two countries, which involve forest resources, timber imports and exports, forestry industrial development, government policies, and geographical factors. This study analyzed the modern wooden structure market at the consumer level in Japan and China, given their different market environments. The results show that Japanese consumers have a higher premium acceptance for modern wooden structure residences, whereas Chinese consumers are more willing to pay for modern wooden structure hotels. Several factors were examined as determinants of consumers' willingness to pay for modern wooden hotels and residences. The results indicate that, for modern wooden hotels, affection and prior experience influence both Japanese and Chinese consumers' willingness to pay price premiums, while education negatively impacts the likelihood of paying a premium for modern wooden structure hotels in China. For modern wooden residences, only affective factors increase the likelihood of paying a premium in both China and Japan; moreover, prior experience, positive knowledge, and household size have negative effects on it in China. Compared with cognitive and demographic factors, affective components influence consumers' willingness to pay for modern wooden structures strongly. These results help to provide a better understanding of the modern wooden structure market in Japan and China, and we offer suggestions to policy makers, developers and timber companies regarding modern wooden structure promotions.
Keywords: Consumer attitude; Price premium; Ordered probit model; WTP; Modern wooden structure (search for similar items in EconPapers)
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