Californian Households - Willingness to Pay for Green PCs

Consumer electronic devices (CEDs) contain toxic materials including heavy metals and brominated flame retardants that can pose a threat to public and environmental health if improperly disposed. Recent legislation enacted in the European Union and introduced in California bans the sale of CEDs containing these toxics. As a result, manufacturers need to change the design of their products to reduce the environmental impact, yet little is known about consumer willingness to pay for these "green" products. We estimate willingness to pay higher prices for environmentally friendly desktop computers by California households and find that most are willing to pay only 1% higher retail prices for "green" PCs. Other key demographic characteristics include age, income, and education. Environmental attitudes and beliefs are also important