California households' willingness to pay for 'green' electronics

Concerns about rapid increases in the volume of electronic waste (e-waste) and its potential toxicity have sharpened policy makers' interest for extended producer responsibility to encourage manufacturers of consumer electronic devices (CEDs) to 'design for the environment'. This paper examines consumer willingness to pay for 'green' electronics based on a 2004 mail survey of California households. Using ordered logit models, it was found that significant predictors of willingness to pay for 'greener' computers and cell phones include age, income, education, beliefs about the role of government for improving environmental quality, as well as environmental attitudes and behaviors, but neither gender nor political affiliation. Although most respondents are willing to pay only a 1% premium for 'greener' CEDs, innovation and EU directives may soon make them competitive with conventional CEDs.