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Valuing climate protection through willingness to pay for biomass ethanol

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  • Solomon, Barry D.
  • Johnson, Nicholas H.
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    Abstract

    This study uses a multi-part, split-sample contingent valuation method (CVM) and fair share (FS) survey to better understand the public's valuation of mitigating global climate change through its willingness to pay for biomass or "cellulosic" ethanol. In addition to a basic CVM question, a related scenario was developed that asked half of the survey respondents to state their fair share cost to lessen a potential food shortage in the next decade, also through the expanded use of cellulosic ethanol. Three alternative biomass feedstocks were assessed: farming residues, forestry residues and paper mill wastes, and municipal solid wastes. Overall a slightly larger proportion of respondents were WTP extra for cellulosic ethanol in the basic CVM scenario than in the FS scenario, though no significant differences were found in the WTP for the different feedstocks. Bid curve lognormal regression results for the two models were similar, supporting the idea that asking a FS rather than a conventional WTP question may be justifiable in some circumstances, such as in cases of a national emergency.

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    Bibliographic Info

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 68 (2009)
    Issue (Month): 7 (May)
    Pages: 2137-2144

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    Handle: RePEc:eee:ecolec:v:68:y:2009:i:7:p:2137-2144

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    Web page: http://www.elsevier.com/locate/ecolecon

    Related research

    Keywords: Biomass energy Cellulosic ethanol Contingent valuation Fair share Global climate change Willingness to pay;

    References

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    Citations

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    Cited by:
    1. Litvine, Dorian & Gazull, Laurent & Dabat, Marie-Hélène, 2014. "Assessing the potential demand for biofuel by combining Economics and Psychology: A focus on proximity applied to Jatropha oil in Africa," Ecological Economics, Elsevier, vol. 100(C), pages 85-95.
    2. Guo, Xiurui & Liu, Haifeng & Mao, Xianqiang & Jin, Jianjun & Chen, Dongsheng & Cheng, Shuiyuan, 2014. "Willingness to pay for renewable electricity: A contingent valuation study in Beijing, China," Energy Policy, Elsevier, vol. 68(C), pages 340-347.
    3. Disdier, Anne-Célia & Marette, Stéphan & Millet, Guy, 2013. "Are consumers concerned about palm oil? Evidence from a lab experiment," Food Policy, Elsevier, vol. 43(C), pages 180-189.
    4. Drichoutis, Andreas C. & Lusk, Jayson & Pappa, Valentina, 2014. "Elicitation formats and the WTA/WTP gap: A study of climate neutral foods," MPRA Paper 55831, University Library of Munich, Germany.
    5. Carlsson, Fredrik & Kataria, Mitesh & Krupnick, Alan & Lampi, Elina & Löfgren, Åsa & Qin, Ping & Chung, Susie & Sterner, Thomas, 2010. "Paying for Mitigation: A Multiple Country Study," Working Papers in Economics 447, University of Gothenburg, Department of Economics.
    6. Jensen, Kimberly L. & Clark, Christopher D. & English, Burton C. & Menard, R. Jamey & Skahan, Denise K. & Marra, Adrienne C., 2010. "Willingness to pay for E85 from corn, switchgrass, and wood residues," Energy Economics, Elsevier, vol. 32(6), pages 1253-1262, November.
    7. Johannes Diederich & Timo Goeschl, 2014. "Willingness to Pay for Voluntary Climate Action and Its Determinants: Field-Experimental Evidence," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 57(3), pages 405-429, March.
    8. Meyerhoff, Jürgen & Liebe, Ulf, 2010. "Determinants of protest responses in environmental valuation: A meta-study," Ecological Economics, Elsevier, vol. 70(2), pages 366-374, December.
    9. Loureiro, Maria L. & Labandeira, Xavier & Hanemann, Michael, 2013. "Transport and low-carbon fuel: A study of public preferences in Spain," Energy Economics, Elsevier, vol. 40(S1), pages S126-S133.
    10. Zografakis, Nikolaos & Sifaki, Elli & Pagalou, Maria & Nikitaki, Georgia & Psarakis, Vasilios & Tsagarakis, Konstantinos P., 2010. "Assessment of public acceptance and willingness to pay for renewable energy sources in Crete," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1088-1095, April.
    11. Diederich, Johannes & Goeschl, Timo, 2011. "Willingness to Pay for Individual Greenhouse Gas Emissions Reductions: Evidence from a Large Field Experiment," Working Papers 0517, University of Heidelberg, Department of Economics.
    12. Achtnicht, Martin, 2011. "Do environmental benefits matter? Evidence from a choice experiment among house owners in Germany," Ecological Economics, Elsevier, vol. 70(11), pages 2191-2200, September.
    13. Anderson, Blake & M'Gonigle, Michael, 2012. "Does ecological economics have a future?," Ecological Economics, Elsevier, vol. 84(C), pages 37-48.
    14. Shewmake, Sharon & Okrent, Abigail M. & Thabrew, Lanka & Vandenbergh, Michael, 2012. "Carbon Labeling for Consumer Food Goods," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124369, Agricultural and Applied Economics Association.
    15. Lim, Seul-Ye & Lim, Kyoung-Min & Yoo, Seung-Hoon, 2014. "External benefits of waste-to-energy in Korea: A choice experiment study," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 588-595.

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