The impacts of economic crisis on green consumption in Taiwan

This paper is aimed to analyze how Taiwanese consumer attitudes and behavior towards green products would change due to the ongoing economic crisis of 2008. From the survey results, we found about 70 percent of respondents know about green consumerism and eco-labeling system. About 80 percent of respondents have an attitude and belief that one can positively influence environmental quality by individual green behavior. However, more than 40 percent of respondents are skeptical of green marketing or advertising. 61 percent of respondents reported they would be willing to purchase green products, even when green product costs more than non-green alternative (85 percent of those green consumers would pay a price premium, but lower than 10 percent). The ongoing global economic crisis, however, would make 44 percent of respondents purchase less green products. The estimation results of the probit model show consumers who would intentionally buy green products with strong green claims due to environmental concerns; are older; and have higher income are more likely to pay a price premium for green products in the presence of global economic crisis. Consumers who perceive green products are usually low in quality; and are married are less likely to buy high-priced green products under the situation of global economic crisis. Results of the ordered probit model show that consumers who would intentionally buy green products with strong green claims due to environmental concerns; who are older; who do not perceive that green products are low in quality and agree green consumption could help improve environmental quality; are more likely to pay more for green products.