Willingness to Pay and Barriers in Gen Z’s Pro-Environmental Product Consumption

¹ Department of Agribusiness, Faculty of Agriculture, Universitas Pembangunan Veteran Yogyakarta, Yogyakarta, Indonesia
² Doctoral School of Economic and Regional Sciences, Hungarian University of Agriculture and Life Sciences, 2100 Godollo, Hungary

^1* Corresponding author: dhika.cahyasita@upnyk.ac.id

Abstract

This study investigated the characteristics and preferences of Generation Z consumers concerning pro-environmental products, focusing primarily on their willingness to pay (WTP) and the factors that inhibit such a willingness. Data from 140 respondents were garnered through a 2023 survey. Results indicate a robust willingness within Gen Z to pay a premium for environmentally sustainable products. However, barriers to consumption were also identified, with the price premium being the most significant deterrent. Other inhibitors include perceived benefits, product availability, limited informational sources, product variety, and individual income levels. Female undergraduate students, predominantly single, were the major demographic displaying these characteristics. The findings elucidate that while there’s a strong pro-environmental inclination among Gen Z, the price remains a primary concern. These insights hold crucial implications for stakeholders in the agricultural and environmental sectors, offering direction for producers, marketers, and policymakers aiming to capitalize on this generation’s environmental consciousness while addressing the identified barriers.