Ling, Y;
Han, Y;
Ren, Q;
Xu, J;
Cao, M;
Gao, X;
(2025)
The effect of consumer willingness to pay on enterprises’ decisions about adopting low-carbon technology.
North American Journal of Economics and Finance
, 75
, Article 102301. 10.1016/j.najef.2024.102301.
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Cao_UCL_AcceptedManuscript_1_2024.pdf - Accepted Version Access restricted to UCL open access staff until 6 November 2025. Download (1MB) |
Abstract
There is no ‘one size fits all’ product strategy for the ‘green’ market. Although prior studies have explored the influence of consumer environmental awareness on decisions pertaining to green production, further investigation is required regarding the impact of consumer willingness to pay (WTP) on green technology choices and product design, and the ongoing debate about the environmental consequences of both firm and consumer behaviour. This study aims to explore strategies adopted by an enterprise intending to introduce a green product. Utilising optimisation methodology, we investigate the strategies employed for introducing green products, considering pivotal factors such as consumers’ WTP, variable costs, the research costs associated with green technology, and the constraints imposed by the level of green technology. Our research investigates the strategies for introducing, and the optimal pricing of, green products, outlining the impact of the aforementioned factors on the market penetration of green products and company profits. Additionally, this research further explores the impact of consumers’ WTP and enterprises’ use of eco-friendly materials on environmental quality. The results indicate that the strategies for launching green products and the impact of eco-friendly materials on environmental quality depend on the enterprise's technological parameters and consumers’ WTP. The findings suggest that the market penetration rate of green products increases in line with consumers’ WTP and the level of greenness of products, while higher research costs will decrease the penetration rate of green products. This research contributes to the field of green innovation by showcasing how enterprises make decisions about production and green technology innovation.
| Type: | Article |
|---|---|
| Title: | The effect of consumer willingness to pay on enterprises’ decisions about adopting low-carbon technology |
| DOI: | 10.1016/j.najef.2024.102301 |
| Publisher version: | https://doi.org/10.1016/j.najef.2024.102301 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Social Sciences, Business, Finance, Economics, Business & Economics, Low carbon technology, Green technology innovation, Willingness to pay, Consumer environmental awareness, GREEN PRODUCT DESIGN, ENVIRONMENTAL AWARENESS, SUSTAINABLE CONSUMPTION, PRICE-DISCRIMINATION, SUPPLY CHAINS, COMPETITION, QUALITY, SUBSIDY, DIFFERENTIATION, MANUFACTURERS |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Bartlett School Env, Energy and Resources |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10203384 |
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