After the industrial revolution, the massive use of carbon fuels have rapidly increased the greenhouse gas, resulting in serious global warming problems. As the demand of reduction of greenhouse gas is expanding, companies and individuals must coopera...
After the industrial revolution, the massive use of carbon fuels have rapidly increased the greenhouse gas, resulting in serious global warming problems. As the demand of reduction of greenhouse gas is expanding, companies and individuals must cooperate to make some change. The 'Carbon Footprint Labelling System' works as a connecting bridge of company's efforts and individual's conscience.
The purpose of this system is to provide information to the consumer about the total greenhouse gas displacement in the production, transportation, distribution, use, and discard process. By this presentation a trend of using low-carbon products can be spread, benefiting companies which tried to produce less carbon. Even though agriculture, marine, and livestock products has been excluded in this system, these products are the base material in the food and drink manufacture and are large carbon producing goods. So it can be said it is important to cut down the carbon usage in the production of agriculture, marine and livestock goods. The carbon footprint labelling system may strictly analyze the environmental superiority of the domestic farm products and through these effort it is expected to stimulate internal consumption.
This research is a precedent study about the importance of carbon footprint labelling system in the agriculture field as a way to achieve more competitiveness. As a basic standard, this thesis can show directions for our future system. As the trend to make low carbon consuming goods are expanding, we interviewed and surveyed consumers of domestic agricultural goods to draw out some key factors that could influence in the development and promotion of this field and increase the overall consumption.
If the carbon footprint labelling system is applied in farm products, a raise in market price is inevitable. Thus a contingent valuation method(CMV) has been used to analyze the purchase behaviors and evaluate how much consumers are willing to endure in the price increase. These figures helped us estimate the ideal product price and market size.
We found out that the awareness of carbon footprint labelling system is quite low, but there is a positive perception that this system has huge potential and importance. Therefore we could use this point to emphasize on the necessity of expansion, and this expansion will bring us a more advanced form of agricultural industry support that meets the global market trend.
Through the results, we figured out that the individual value of product price and quality are the main factor in the difference of consumption after the carbon footprint labelling system has been enlarged. As for this reason a continuos education and advertisement must be held to create a social atmosphere and to enlighten consumers about the importance and expected effects of the system.
It shows that the 12% raise in price when carbon footprint labelling system are held wouldn't change the choice of the consumer. Therefore this system and efforts in making less carbon discharging goods can lead to a very positive result. The success or failure of this system depends on the government's political effort and achievements of social demand. These investments could change the minds of the minority group(32%) of consumers, excluding the 68% who showed willingness to pay.