Consumer willingness to pay a price premium for ecological goods: a case study from Ukraine

Anatolii Kucher (), Heldak Maria, Kucher Lesia, Fedorchenko Olha and Yurchenko Yuliia
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Heldak Maria: Wroclaw University of Environmental and Life Sciences, 25 Norwida Str., Wrocław50-375, Poland
Kucher Lesia: Kharkiv National University named after V.V. Dokuchajev, educ. Campus KNAU, Kharkiv, 62483, Ukraine
Fedorchenko Olha: V.N. Karazin Kharkiv National University, 4 Svobody Sq., Kharkiv, 61022, Ukraine
Yurchenko Yuliia: V.N. Karazin Kharkiv National University, 4 Svobody Sq., Kharkiv, 61022, Ukraine

Environmental & Socio-economic Studies, 2019, vol. 7, issue 1, 38-49

Abstract: The aim of this paper was to define and analyze local consumers’ willingness to pay a price premium for ecological goods in the regions of Ukraine (on the example of the residents of Kharkiv and Kyiv). For this purpose, different methods were used in the research: surveys; abstract-logical; induction and deduction; monographic; comparative analysis; graphic. The scientific value was provided by the theoretical development and methodological principles of assessing the willingness of consumers to pay a price premium for ecological goods in the regions of Ukraine. These have become the scientific basis for assessing the future development of this segment of the market, since more than half of consumers are ready to buy ecological products, even more expensive than ordinary ones, but there is a certain limit for the price premium. It was revealed that the potential for market development is the greatest, provided that the price premium for the environmental properties of the goods is not more than 25%. Accordingly, the higher the price premium on ecological goods, the less consumers are willing to buy them. The comparison of consumers’ attitudes from different regions (examples from the residents of Kharkiv and Kyiv) on ecological goods and their willingness to pay a price premium for them showed that one of the key factors is the level of the purchasing power of the population. The obtained results of the research can be used to assess the prospects for the development of the market in ecological goods, to develop a set of measures to increase the level of readiness of domestic consumers to pay a price premium for ecological products and the adoption of managerial and marketing decisions in the relevant segment of the market.

Keywords: consumers’ willingness to pay; price premium; ecological goods; ecological economics; Ukraine (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:vrs:enviro:v:7:y:2019:i:1:p:38-49:n:4

DOI: 10.2478/environ-2019-0004

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