Environmental Consciousness and People’s Behavior: An Investigation of the Factors Influencing People’s Willingness to Pay for Environmentally-Friendly Products in District Charsadda

Abstract

Eco-friendly products are useful to the environment and other living organisms. The world is becoming more receptive to adopting environmentally friendly products, including biodegradable plastic bags. This research aims to examine people’s perception and willingness to pay for utilizing biodegradable plastic bags in Charsadda, Khyber Pakhtunkhwa, Pakistan. To achieve this objective, primary data were collected from 400 respondents through in-person interviews by using the contingent valuation survey method (CVM) in various markets and households within the study area. The data were obtained through an open-ended elicitation format. The study's findings suggest that demographic and socioeconomic factors, including age, income, employment status, education, and awareness, influence respondents' perceptions of paying higher prices for biodegradable plastic bags.  Research findings also reveal that the respondents who are located in urban areas rather than in rural areas are more willing to pay a price premium if the product offered is biodegradable. Overall, the results suggest an 18 percent price premium for biodegradable plastic bags.