Question

How is the concept of willingness to pay tied to environmental benefits? How is it tied to value? Provide specific examples to illustrate your responses.

Answer 1

The consumers go to become environmental consciousness and they get to care a lot about the environment where consider a product which get to provide environmental benefits and here the consumer willingness to pay will be higher than the actual value as he actually feels that he is responsible for the environment on the whole. In terms of value, the willingness to pay for a product will be more in general to the normal one. For instance consider a product packed of plastic and same product packed with environmental friendly bag and here the consumer rates the environmental friendly bag higher as it does not harm to the encirenviro and opts for it.