Consumer willingness to pay for a naturally decay-resistant wood product

Abstract

Chromated copper arsenate (CCA) is the most widely used chemical wood preservative in the United States. Concerns about the safety of CCA led to an agreement between the Environmental Protection Agency and the wood treatment industry to withdraw CCA for nonindustrial uses by the end of 2003. In light of the publicity surrounding the withdrawal of CCA, this article evaluates consumers' willingness to pay a premium for products manufactured from naturally decay-resistant wood as opposed to chemically treated wood. We use a national contingent valuation survey to quantify consumer willingness to pay for a children's play structure made from Alaska yellow-cedar, as opposed to an identical play structure made from southern pine treated with ammonial copper quaternary, the likely replacement for CCA. Respondents' estimated mean willingness to pay for the Alaska yellow-cedar play structure is $2,013, compared to $1,000 for the treated southern pine structure. This study shows that manufacturers of products made from naturally decay-resistant wood may be able to capture a substantial premium for their products. © 2004 by the Society of American Foresters.