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Willingness to supply biomass for bioenergy production: A random parameter truncated analysis

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  • Altman, Ira
  • Bergtold, Jason
  • Sanders, Dwight
  • Johnson, Tom

Abstract

This paper presents research results based on data from two biomass producer surveys collected from mid Missouri and southern Illinois. A series of random parameter truncated regressions are utilized to analyze willingness to supply results under three price scenarios. Marginal effects suggest that producers will supply an additional 1.6 to 2.4% of their biomass production for each one dollar increase in price and that supply for three types of biomass (stover, straw and hay) is elastic. This means commercial developers that are interested in pricing biomass and policy makers considering subsidies could expect modest supply responses for each dollar increase in price.

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  • Altman, Ira & Bergtold, Jason & Sanders, Dwight & Johnson, Tom, 2015. "Willingness to supply biomass for bioenergy production: A random parameter truncated analysis," Energy Economics, Elsevier, vol. 47(C), pages 1-10.
    • Handle: RePEc:eee:eneeco:v:47:y:2015:i:c:p:1-10
    DOI: 10.1016/j.eneco.2014.10.016
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    Cited by:

    1. Bergtold, Jason S. & Shanoyan, Aleksan & Fewell, Jason E. & Williams, Jeffery R., 2017. "Annual bioenergy crops for biofuels production: Farmers' contractual preferences for producing sweet sorghum," Energy, Elsevier, vol. 119(C), pages 724-731.
    2. Rosburg, Alicia & Miranowski, John & Jacobs, Keri, 2016. "Modeling biomass procurement tradeoffs within a cellulosic biofuel cost model," Energy Economics, Elsevier, vol. 58(C), pages 77-83.
    3. Kwabena Krah & Daniel R Petrolia & Angelica Williams & Keith H Coble & Ardian Harri & Roderick M Rejesus, 2018. "Producer Preferences for Contracts on a Risky Bioenergy Crop," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 240-258.
    4. Scott M. Swinton & Felix Dulys & Sarah S.H. Klammer, 2021. "Why Biomass Residue Is Not as Plentiful as It Looks: Case Study on Economic Supply of Logging Residues," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 1003-1025, September.
    5. Natarajan, Karthikeyan & Latva-Käyrä, Petri & Zyadin, Anas & Pelkonen, Paavo, 2016. "New methodological approach for biomass resource assessment in India using GIS application and land use/land cover (LULC) maps," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 256-268.
    6. Giannoccaro, Giacomo & de Gennaro, Bernardo C. & De Meo, Emilio & Prosperi, Maurizio, 2017. "Assessing farmers' willingness to supply biomass as energy feedstock: Cereal straw in Apulia (Italy)," Energy Economics, Elsevier, vol. 61(C), pages 179-185.
    7. Nogueira, Luiz Augusto Horta & Antonio de Souza, Luiz Gustavo & Cortez, Luís Augusto Barbosa & Leal, Manoel Regis Lima Verde, 2017. "Sustainable and Integrated Bioenergy Assessment for Latin America, Caribbean and Africa (SIByl-LACAf): The path from feasibility to acceptability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 292-308.
    8. Zuo, Alec & Hou, Lingling & Huang, Zeying, 2020. "How does farmers' current usage of crop straws influence the willingness-to-accept price to sell?," Energy Economics, Elsevier, vol. 86(C).
    9. Van Deynze, B., 2018. "The Effects of Experience on Landowner Preferences over Bioenergy Feedstocks," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277001, International Association of Agricultural Economists.
    10. Kassu Wamisho Hossiso & Aaron Laporte & David Ripplinger, 2017. "The Effects of Contract Mechanism Design and Risk Preferences on Biomass Supply for Ethanol Production," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 339-357, June.
    11. Miao, Ruiqing & Khanna, Madhu, 2017. "Costs of meeting a cellulosic biofuel mandate with perennial energy crops: Implications for policy," Energy Economics, Elsevier, vol. 64(C), pages 321-334.
    12. Rosburg, Alicia & Miranowski, John & McFadden, Jonathan, 2016. "Mitigating Feedstock Supply Risk in Corn Stover Biofuel Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235875, Agricultural and Applied Economics Association.
    13. Zemo, Kahsay Haile & Termansen, Mette, 2018. "Farmers’ willingness to participate in collective biogas investment: A discrete choice experiment study," Resource and Energy Economics, Elsevier, vol. 52(C), pages 87-101.
    14. Gérard, Maxence & Jayet, Pierre-Alain, 2023. "European farmers’ response to crop residue prices and implications for bioenergy policies," Energy Policy, Elsevier, vol. 177(C).
    15. Anas Zyadin & Karthikeyan Natarajan & Suresh Chauhan & Harminder Singh & Md. Kamrul Hassan & Ari Pappinen & Paavo Pelkonen, 2015. "Indian Farmers’ Perceptions and Willingness to Supply Surplus Biomass to an Envisioned Biomass-Based Power Plant," Challenges, MDPI, vol. 6(1), pages 1-13, April.
    16. Townsend, T.J. & Sparkes, D.L. & Ramsden, S.J. & Glithero, N.J. & Wilson, P., 2018. "Wheat straw availability for bioenergy in England," Energy Policy, Elsevier, vol. 122(C), pages 349-357.
    17. Li, Chao & Hayes, Dermot J. & Jacobs, Keri L., 2018. "Biomass for bioenergy: Optimal collection mechanisms and pricing when feedstock supply does not equal availability," Energy Economics, Elsevier, vol. 76(C), pages 403-410.
    18. Mamun, Saleh & Hansen, Jason K. & Roni, Mohammad S., 2020. "Supply, operational, and market risk reduction opportunities: Managing risk at a cellulosic biorefinery," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    19. Ludwik Wicki & Kaspars Naglis-Liepa & Tadeusz Filipiak & Andrzej Parzonko & Aleksandra Wicka, 2022. "Is the Production of Agricultural Biogas Environmentally Friendly? Does the Structure of Consumption of First- and Second-Generation Raw Materials in Latvia and Poland Matter?," Energies, MDPI, vol. 15(15), pages 1-16, August.
    20. Maxence Gérard & Pierre-Alain Jayet, 2023. "European farmers’ response to crop residue prices and implications for bioenergy policies [Réponse des agriculteurs européens aux prix des résidus de cultures et implications pour les politiques bi," Post-Print hal-04071932, HAL.
    21. Burli, Pralhad & Lal, Pankaj & Wolde, Bernabas & Jose, Shibu & Bardhan, Sougata, 2021. "Perceptions about switchgrass and land allocation decisions: Evidence from a farmer survey in Missouri," Land Use Policy, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Biomass; Willingness to supply; Bioenergy; Price;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction

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