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Using stated preferences to estimate the environmental benefits of using biodiesel fuel in diesel engines

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  • Jeanty, Pierre Wilner
  • Hitzhusen, Frederick J.

Abstract

Using biodiesel fuel to reduce emissions from diesel engines is an area of increasing interest. Many environmental benefits associated with biodiesel are not traded in markets and their estimation requires economic valuation methods applied to non-market goods and services. This paper presents the results of a contingent valuation survey conducted in 2006 in two Ohio regions to estimate willingness to pay for air pollution reduction arising from using biodiesel fuel in diesel engines. The double bounded parametric formulation was used to estimate mean WTP ranging from $157 to $457. These results yield estimated aggregate benefits ranging from $123 to $429 million and can be used as a starting point for cost-benefit analysis.

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File URL: http://purl.umn.edu/48773
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Bibliographic Info

Paper provided by Farm Foundation in its series Biofuels, Food and Feed Tradeoffs, Biofuels, Food and Feed Tradeoffs Conference, April 12-13, 2007, St, Louis, Missouri with number 48773.

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Date of creation: 2007
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Handle: RePEc:ags:ffbi07:48773

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Related research

Keywords: Biodiesel; diesel; air pollution; environmental benefits; contingent valuation; willingness to pay; double bounded model; Environmental Economics and Policy; Resource /Energy Economics and Policy; I18; L91; Q42; Q51; Q53;

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  1. Maria L. Loureiro & Azucena Gracia & Rodolfo M. Nayga, 2006. "Do consumers value nutritional labels?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 33(2), pages 249-268, June.
  2. Fredrik Carlsson & Olof Johansson-Stenman, 2000. "Willingness to pay for improved air quality in Sweden," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 661-669.
  3. Trudy Ann Cameron & John Quiggin, 1992. "Estimation Using Contingent Valuation Data From a "Dichotomous Choice with Follow-Up" Questionnaire," UCLA Economics Working Papers 653, UCLA Department of Economics.
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Cited by:
  1. Gracia, Azucena & Barreiro-Hurle, Jesus & Perez y Perez, Luis, 2011. "Consumers’ willingness to pay for biodiesel in Spain," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114605, European Association of Agricultural Economists.

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