Saving Tropical Forests by Knowing What We Consume
2016
Giam, Xingli | Mani, Letchumi | Koh, Lian Pin | Tan, Hugh T.W.
Oil palm agriculture threatens tropical forests and biodiversity. Previous studies focused on finding ways to reduce the impacts of oil palm on biodiversity and the environment. However, the actual uptake of sustainable practices depends in part on economic demand. We undertook the first investigation on consumer attitudes and willingness‐to‐pay (WTP) for deforestation‐free sustainable palm oil. In a sample of 251 consumers in Singapore, we found little consumer bias against palm oil per se. However, consumers had strong negative opinions toward products that cause deforestation. On average, consumers stated a WTP of 8.2–9.9% more for common palm oil‐containing products that are deforestation‐free. Given the current premium for segregated certified sustainable palm oil (CSPO; 1.5–5%), there is an incentive for manufacturers to use CSPO. Educational campaigns by environmental organizations and prominent advertising of CSPO usage through sustainability labels can potentially improve the economic demand for sustainable practices in oil palm agriculture.
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