Willingness to pay for sustainable delivery: Evidence from young consumers in Italy and Norway

Abstract

The exponential growth of online shopping has created new operational and environmental challenges for last-mile distribution. Despite growing concerns about the environmental impact of e-commerce, little is known about consumers’ willingness to pay (WTP) to reduce last-mile delivery emissions. This paper estimates WTP for offsetting delivery emissions, considering factors such as shopping habits, attitudinal influences, and country-specific preferences. A contingent valuation (CV) survey was conducted with 3,791 respondents in Italy and Norway—two countries with differing levels of environmental consciousness and social responsibility—and a hybrid mixed logit model (HMXL) was used to estimate WTP. The results show that frequent online shoppers are more likely to pay to reduce delivery emissions, with WTP varying by socio-demographic characteristics and types of products purchased online. Belief in societal environmental responsibility significantly influences WTP, especially among Norwegian respondents. Additionally, awareness of the environmental damage caused by delivery emissions plays a crucial role in shaping the WTP. To our knowledge, this is the first study to estimate the WTP for offsetting last-mile delivery emissions using CV and HMXL, comparing countries with differing environmental sensitivities. These findings offer valuable insights for e-retailers seeking strategies to reduce last-mile emissions and for policymakers promoting sustainable urban freight distribution.