Environmental Assessment Trends in the Chinese Market and the Impact on Japan

ABSTRACT

This research focuses on food safety and air pollution in urban areas, which are becoming social issues even among China’s environmental problems. We conducted an attitude survey of consumers concerning environmentally-friendly automobiles and foods in China’s urban areas. Specifically, we conducted a questionnaire survey of consumers in Shanghai through interviews, and utilized conjoint analysis, an analytical method that can quantitatively grasp the economic value of multiple attributes.

In terms of environmentally-friendly foods, awareness of “organic foods” and “green foods” was quite high, and there was a preference for “local” regarding the production region. Concerning the importance of attributes, “taste” was most important for rice followed by “quality” and “production region”. The marginal willingness to pay (MWTP) for quality, which shows the level of greenness, was about 2.1 yuan per kilogram for rice and about 1.6 yuan per 500 grams for tomatoes. Both are within the price gap between normal products and green products in the actual market.

Regarding automobiles, fewer than 40% of responders were holders of driver’s licenses, and preferences concerning manufacturers and driving systems were not very clear. The order of importance for attributes were “brand”, “gas mileage”, “driving system” and “horsepower”. The MWTP for “gas mileage” was 7,570 yuan and 6,820 yuan for “driving system”, a smaller price disparity compared to hybrid cars and gasoline cars.

The green consuming purchasing behavior in China’s urban areas is directly connected with kind of environmental damage that consumers can relate to, such as food, and is quite mature regarding cheap everyday products. On the other hand, purchasing behavior concerning products that have indirect environmental damage and use expensive, durable material has not yet matured. On the whole, however, awareness of green products is increasing, and regarding marketing in China it is necessary that the maturing speed of the green market be closely monitored.