Determinants of consumers' hypothetical willingness to pay for circular fashion

This paper examines consumers' hypothetical willingness to pay (WTP) for sustainable fashion products, distinguishing between green attributes (e.g., natural fibers) and circular attributes (e.g., second-hand and recycled materials). It focuses on how economic considerations and environmental attitudes jointly influence consumers' valuation and purchasing behavior. Using original survey data from a sample of Italian consumers, we analyze stated WTP for identical t-shirts differing only in their production attributes: new (linear), second-hand (circular), made of natural fibers (green), and made of recycled materials (circular). Results reveal that while second-hand garments are perceived as highly sustainable, they display a significantly lower WTP, confirming the presence of a sustainability-related attitude-behavior gap. In contrast, t-shirts made of natural fibers and recycled materials receive positive and statistically significant green and circular premium, respectively. Regression results further show that pro-environmental behavior positively affects WTP only for second-hand products, whereas quality, comfort, and versatility negatively influence their valuation. Conversely, economic considerations significantly reduce WTP for green and recycled garments, highlighting the dominance of explicit economic preferences over environmental ones. Overall, the findings provide empirical evidence relevant to SDG 12, highlighting the challenges of promoting responsible consumption in the fashion industry.