Are There Price Premiums for Certified Wood?Empirical Evidence from Log Auction Data in Japan

Author

Yuki Yamamoto (y-yamamoto@nagasaki-u.ac.jp), Kenji Takeuchi (takeuchi@econ.kobe-u.ac.jp) and Takayoshi Shinkuma (shinkuma@kansai-u.ac.jp)

No 1209, Discussion Papers from  Graduate School of Economics, Kobe University

Abstract: By using data on more than 38,000 log auction transactions from market in Shizuoka Prefecture, Japan, we estimate whether there is a price premium for certification of sustainable forest management. We found a positive and significant effect of certification for logs, especially in the smaller diameter category. The reason for the difference between diameter size can be attributed to demand from pulp and paper manufacturers. The premium found was 1.8% of the price of conventional logs, in the lower range of additional willingness to pay found in previous studies that used stated preference techniques. An analysis that includes a pre-certification equilibrium price suggests that Japanese certification is unsuccessful despite the existence of a price premium.

Keywords: Forest certification; Price premium; Log auction; Japan (search for similar items in EconPapers)
Date: 2012-06
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