Willingness-to-pay for sustainable beer.

Abstract

Breweries across the country are investing in energy efficient and low-carbon brewing practices. Drawing insights from the sustainable consumption and ecological economics literature, this analysis evaluates whether consumers are willing to pay more for sustainable beer and what predicts the value of the premium. Based on a survey of beer consumers from across the U.S. that contained one of two willingness-to-pay exercises, we evaluate what respondent attributes are associated with a higher willingness-to-pay for sustainably brewed beer. We find that the majority of beer consumers are willing to pay more for sustainable beer. Consumers who are prepared to pay a premium tend to already pay more per unit of beer, are more aware of their purchasing behavior and the manner in which their consumption patterns may affect the environment, and pursue lifestyles based on professional advancement, helping the environment, and helping other causes.