Consumers’ WTP for Sustainability Turfgrass Attributes with Consideration of Aesthetic Attributes and Water Conservation Policies

Hyojae Jung and Chanjin Chung ()
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Hyojae Jung: Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078, USA
Chanjin Chung: Department of Agricultural Economics, Oklahoma State University, Stillwater, OK 74078, USA

Agriculture, 2024, vol. 14, issue 1, 1-16

Abstract: This study estimates consumers’ willingness to pay (WTP) for sustainability turfgrass attributes such as low-input and stress-tolerance attributes, while considering potential trade-off relationships between aesthetic attributes and sustainability attributes. To address our objectives, our study conducts a choice experiment and estimates two mixed logit models. The first model includes low-input, winter kill, and shade-tolerance attributes as predictor variables, and the second model extends the first model by adding interaction terms between the aesthetic and sustainability attributes. Another choice experiment is conducted under water policies with various water rate increase and watering restriction scenarios. Results from the mixed logit models show that, overall, higher low-input cost reduction, less winter-damaged, and more shade-tolerant grasses are preferred, and that the direct effect of aesthetic attributes on consumers’ preferences is strong, but the indirect effects represented by the interaction terms are generally statistically insignificant. Our results indicate that consumers like to have a pretty lawn, but no strong consideration is given to the aesthetics of their lawn when selecting low-input and stress-tolerant turfgrasses. Our choice experiment under water policy scenarios suggests that water pricing is more effective than watering restriction in increasing consumer demand for water-conserving turfgrasses.

Keywords: turfgrass attribute; missing attribute; trade-off relationship; water conservation policy (search for similar items in EconPapers)
JEL-codes: Q1 Q10 Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 (search for similar items in EconPapers)
Date: 2024
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