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Assessing the potential demand for biofuel by combining Economics and Psychology: A focus on proximity applied to Jatropha oil in Africa

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  • Litvine, Dorian
  • Gazull, Laurent
  • Dabat, Marie-Hélène

Abstract

Bio-energy demand is known to be influenced by geographical origin and social equity. This paper aims to highlight the influence of the proximity between biomass production and energy consumption on the demand for alternative bio-fuels. In the context of Burkina Faso, we explore potential demand for Jatropha oil (Jatropha curcas) as a diesel substitute among engine owners. Survey data are based on a between-groups design: one group of respondents experiencing a local supply chain, while the other a global one. Results show that proximity has a significant effect on potential demand itself and on the formation and strength of beliefs regarding Jatropha oil. In a local supply chain context, the demand is superior and seems to be guided more by a certain economic and technical rationality. Conversely, the prospect of a Jatropha oil produced outside the village restrains demand and this latter is more determined by contextual factors and social interaction. Our analysis confirms that demand does not only depend on technical and economic factors such as price but also on the integration of the biomass production and processing in the socioeconomic life of local rural populations. Understanding demand construction and assessing underlying beliefs are key success factors for bio-energy projects.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ecolec:v:100:y:2014:i:c:p:85-95
    DOI: 10.1016/j.ecolecon.2014.01.018
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    More about this item

    Keywords

    Demand study; Local supply chain; Fuel substitution; Belief strength; Preference construction; Vegetable oil; Jatropha curcas; Social Psychology;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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