Estimating consumers' willingness to pay for reusable food containers when ordering delivery food: A contingent valuation approach

Abstract

The environmental impacts of delivery food packaging waste pose an increasing threat as the delivery industry is growing rapidly worldwide. Possible effects include soil, water and air pollution, increased CO2-emissions and death of aquatic organisms. Previous research has demonstrated the environmental advantages of distributing reusable food containers, rather than single-use or bio-degradable. Therefore, this research examines the possibility of introducing a city-scale reusable food container system for delivery platforms in Seoul, South Korea, based on a contingent valuation survey that examined the consumers' willingness to pay (WTP) additionally in order to get a reusable container when ordering delivery food. If the container has to be returned to a facility within 500m, the WTP was found to be USD 1.92; if the container will be picked up at the point of delivery, the WTP is USD 2.18. The cost analysis suggests that it is feasible to offer reusable food container option for companies that have at least 25% market share in South Korea, with which a 114% return of investment can be achieved after one year. Based on the results, policy recommendations are made to support the introduction of reusable food containers for delivery platforms and a pilot project in areas with high population density is suggested.