Leveraging carbon label to achieve low-carbon economy: Evidence from a survey in Chinese first-tier cities

Abstract

Carbon label is an important tool for countries to achieve green economy in the context of global climate change. Since the public is the end consumer of carbon-labeled products, understanding their attitudes towards carbon label is crucial for the future development of carbon labeling system. Under this background, we conduct a survey on consumers' perception of carbon-labeled electrical and electronic products (CEP) in Chinese first-tier cities. Consumers' premium willingness to pay (WTP) for CEP and its influencing factors are explored. After correcting the possible estimation bias by a sample selection model, we find that 85.97% of respondents are willing to pay more for carbon-labeled products. Besides, males, respondents who are younger or richer, or with underage children at home are more willing to pay a premium for carbon-labeled products. The degree of trust and understanding of carbon label also has a positive impact on the premium WTP. As for the specific value of premium WTP, an additional 7.85% of the original price for CEP is willing to be paid. The above findings can provide targeted reference for policymakers in pricing carbon-labeled products, and also yield effective policy recommendations for the future development of carbon label system.

Keywords: Carbon label; Carbon-labeled electrical and electronic products; Low-carbon consumption; Willingness to pay.