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April 26, 2012

Are you willing to pay more for green products?

Everyone talks about buying socially and environmentally superior products. But, when they're alone in the shopping aisle and it’s just them and their wallet, it seems people rarely fork out more for “green.”

In a recent survey, nearly half of the respondents (46%) say they're more inclined to buy a product if it's  eco-friendly, but 59% admit they'd be unwilling to pay a higher price for an eco-friendly product or service over one that is not eco-friendly.

The problem seems to be that most consumers believe organic and eco-friendly products are good for the planet, but they aren't certain how big a difference these products actually make. And they certainly don't feel like paying more for them.

But this will eventually change, particularly if WalMart and other major vendors keep demanding that their suppliers go green. Altruism? No, just good business.

While there's been little rise in the percentage of "true green" consumers who support eco-friendly products at almost all costs, there are more conflicted or conscious consumers, says Andrew Winston, the author of Green to Gold and Green Recovery.

These buyers, which are quickly becoming the majority of consumers, not a niche segment, want it all, which means more sustainable products at the same or lower price.

Does green matter? How much more, if anything, are you willing to pay for green products? Or is price alone your trigger point?

By Gordon Powers, MSN Money

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...