Assessment of Willingness to Pay for Coral-Safe Sunscreen

Woodruff, Chelsea Kingsland

Assessment of Willingness to Pay for Coral-Safe Sunscreen

Authors

Woodruff, Chelsea Kingsland

Abstract

Thousands of tons of synthetic sunscreens enter our oceans each year, carrying with them coral-toxic chemicals. Coral reefs function as hubs of marine biodiversity and shoreline protection. Mineral-based coral-safe sunscreens are relatively new to the market. Rising awareness of reef-safe products over their synthetic counterparts is expected to have a positive impact on demand. The need exists to examine potential consumers and their willingness to pay (WTP) for products such as coral-safe sunscreen. Three aspects of consumer attitudes are of interest: the nature and extent of environmental concerns, the extent to which these concerns might result in consumer behavior, and the extent of WTP. This project used an online survey to reach individuals from around the country by asking referenda, close-ended, and Likert-scale questions about coral-safe sunscreen products and about individuals’ attitudes towards the environment. The method of analysis is through the framework of contingent valuation method (CVM) to directly determine a consumer’s WTP. The average WTP price for sunscreens, as noted by respondents, was $17. There was a direct positive relationship between the increase of WTP premium and the higher Humans Interference with Nature score, as calculated from the New Environmental Paradigm Scale questions. The outcome of this project is to provide a data set of consumers’ attitudes and perspectives towards coral-safe products. This is to evaluate the efficacy of consumer knowledge about environmental issues, such as this one.