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In an effort to encourage ecologically sustainable forestry practices, an international organization started issuing certifications to wood companies that meet high ecological standards by conserving resources and recycling materials. Companies that receive this certification can attract customers by advertising their products as eco-certified. Around the world, many wood companies have adopted new, ecologically friendly practices in order to receive eco-certification. However, it is unlikely that wood companies in the United States will do the same, for several reasons.
First, American consumers are exposed to so much advertising that they would not value or even pay attention to the eco-certification label. Because so many mediocre products are labeled 'new" or improved,'' American consumers do not place much trust in advertising claims in general.
Second, eco-certified wood will be more expensive than uncertified wood because in order to earn eco-certification, a wood company must pay to have its business examined by a certification agency. This additional cost gets passed on to consumers-American consumers tend to be strongly motivated by price, and therefore they are likely to choose cheaper uncertified wood products. Accordingly, American wood companies will prefer to keep their prices low rather than obtain eco-certification
Third, although some people claim that it always makes good business sense for American companies to keep up with the developments in the rest of the world, this argument is not convincing. Pursuing certification would make sense for American wood companies only if they marketed most of their products abroad. But that is not the case—American wood businesses sell most of their products in the United States, catering to a very large customer base that is satisfied with the merchandise.
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