Licensing Scheme in the Green Industry Sector: The Case of Georgia Tree Care Service Providers

Abstract

Tree care license requirements are expected to improve service quality and provider competencies. The study elicits the licensing fee Georgia firms would pay using survey data from 153 tree care firms. An empirical relationship identifies firm characteristics that influence the fee size using the inverse hyperbolic sine transformation function. Results show that respondents who propose higher annual licensing fees are on average younger, more educated, male, and likely to agree that mandatory licensing is necessary to establish professionalism in the tree care industry. Also, those often engaged in tree trimming services and firms with higher annual revenues contemplate paying higher licensing fees.