IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v32y2010i1p121-128.html
   My bibliography  Save this article

Do Americans want ethanol? A comparative contingent-valuation study of willingness to pay for E-10 and E-85

Author

Listed:
  • Petrolia, Daniel R.
  • Bhattacharjee, Sanjoy
  • Hudson, Darren
  • Herndon, Cary W.

Abstract

A nationwide contingent-valuation survey of consumer preferences for consumer fuel blends E-10 (a blend of 10% ethanol and 90% gasoline for use in standard vehicles) and E-85 (a blend of 85% ethanol and 15% gasoline for use in flex-fuel vehicles) was conducted to estimate willingness to pay (WTP) and identify key characteristics driving demand. Results indicate that overall perceptions of ethanol are positive, but ethanol is not the globally-preferred transportation-energy alternative, even among consumers with a positive WTP. Results indicate also that demand for E-85 is more price inelastic than E-10, with this result driven by consumers with no preference for E-10 but strong preferences for E-85. Finally, results also indicate that those consumers who are unsure about the micro-level benefits of E-85 are nonetheless more inclined to pay a premium.

Suggested Citation

  • Petrolia, Daniel R. & Bhattacharjee, Sanjoy & Hudson, Darren & Herndon, Cary W., 2010. "Do Americans want ethanol? A comparative contingent-valuation study of willingness to pay for E-10 and E-85," Energy Economics, Elsevier, vol. 32(1), pages 121-128, January.
  • Handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:121-128
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140-9883(09)00139-X
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
    2. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    3. Shapouri, Hosein & Duffield, James A. & Graboski, Michael S., 1995. "Estimating the Net Energy Balance of Corn Ethanol," Agricultural Economics Reports 34005, United States Department of Agriculture, Economic Research Service.
    4. Jayson L. Lusk & Jutta Roosen & John A. Fox, 2003. "Demand for Beef from Cattle Administered Growth Hormones or Fed Genetically Modified Corn: A Comparison of Consumers in France, Germany, the United Kingdom, and the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 16-29.
    5. Shapouri, Hosein & Duffield, James A. & Wang, Michael Q., 2002. "The Energy Balance of Corn Ethanol: An Update," Agricultural Economics Reports 34075, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Beibei & Wang, Feng & Yunze, Wu & Jun, Bi & Maoliang, Bu & Gao, Juan, 2012. "Life cycle implication of the potential commercialization of stover-based E85 in China," Energy Policy, Elsevier, vol. 43(C), pages 371-380.
    2. Kimberly Jensen & Christopher Clark & Burton English & Dustin Toliver, 2012. "Effects of Demographics and Attitudes on Willingness-to-Pay for Fuel Import Reductions through Ethanol Purchases," Agriculture, MDPI, Open Access Journal, vol. 2(3), pages 1-17, July.
    3. Liao, Kenneth & Pouliot, Sébastien, 2016. "Estimates of the Demand for E85 Using Stated-Preference Data off Revealed-Preference Choices," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 236107, Agricultural and Applied Economics Association.
    4. Pouliot, Sébastien & Babcock, Bruce A., 2017. "Feasibility of meeting increased biofuel mandates with E85," Energy Policy, Elsevier, vol. 101(C), pages 194-200.
    5. Zhang, Yong & Yu, Yifeng & Li, Tiezhu & Zou, Bai, 2011. "Analyzing Chinese consumers' perception for biofuels implementation: The private vehicles owner's investigating in Nanjing," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2299-2309, June.
    6. Winden, Matthew & Cruze, Nathan & Haab, Tim & Bakshi, Bhavik, 2015. "Monetized value of the environmental, health and resource externalities of soy biodiesel," Energy Economics, Elsevier, vol. 47(C), pages 18-24.
    7. Ho-Young Kim & So-Yeon Park & Seung-Hoon Yoo, 2016. "Public Acceptability of Introducing a Biogas Mandate in Korea: A Contingent Valuation Study," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-16, October.
    8. repec:eee:ecoser:v:19:y:2016:i:c:p:32-41 is not listed on IDEAS
    9. Jeong Hwan Bae, 2014. "Supply Portfolio of Bioethanol in the Republic of Korea," Korean Economic Review, Korean Economic Association, vol. 30, pages 133-161.
    10. Collantes, Gustavo, 2010. "Do green tech policies need to pass the consumer test?: The case of ethanol fuel," Energy Economics, Elsevier, vol. 32(6), pages 1235-1244, November.
    11. Kallas, Zein & Gil, José Maria, 2014. "Consumers' preferences towards biodiesel in the Spanish transport sector: A case study in Catalonia," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182801, European Association of Agricultural Economists.
    12. 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 126-133.
    13. Krah, Kwabena & Petrolia, Daniel & Coble, Keith & Williams, Angelica & Harri, Ardian, 2015. "Producer Preferences for Contracts on a Risky Bioenergy Crop," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196994, Southern Agricultural Economics Association.
    14. Sivashankar, Pathmanathan & Weerahewa, Jeevika & Pushpakumara, Gamini & Galagedara, Lakshman, 2016. "An estimation of the willingness to pay for biodiesel: a pilot study of diesel consumers," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 5(1), April.
    15. Aguilar, Francisco X. & Cai, Zhen & Mohebalian, Phillip & Thompson, Wyatt, 2015. "Exploring the drivers' side of the “blend wall”: U.S. consumer preferences for ethanol blend fuels," Energy Economics, Elsevier, vol. 49(C), pages 217-226.
    16. repec:eee:forpol:v:83:y:2017:i:c:p:99-106 is not listed on IDEAS
    17. Li, Tongzhe & McCluskey, Jill J., 2017. "Consumer preferences for second-generation bioethanol," Energy Economics, Elsevier, vol. 61(C), pages 1-7.
    18. Alló, Maria & Loureiro, Maria L., 2014. "The role of social norms on preferences towards climate change policies: A meta-analysis," Energy Policy, Elsevier, vol. 73(C), pages 563-574.
    19. Kallas, Zein & Gil, José María, 2015. "Do the Spanish want biodiesel? A case study in the Catalan transport sector," Renewable Energy, Elsevier, vol. 83(C), pages 398-406.
    20. Kenneth Liao & Sebastien Pouliot & Bruce A. Babcock, 2016. "Estimating Willingness to Pay for E85 in the United States," Center for Agricultural and Rural Development (CARD) Publications 16-wp562, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    21. Adaman, Fikret & KaralI, Nihan & Kumbaroglu, Gürkan & Or, Ilhan & Özkaynak, Begüm & Zenginobuz, Ünal, 2011. "What determines urban households' willingness to pay for CO2 emission reductions in Turkey: A contingent valuation survey," Energy Policy, Elsevier, vol. 39(2), pages 689-698, February.
    22. repec:eee:enepol:v:106:y:2017:i:c:p:32-40 is not listed on IDEAS
    23. Gracia, Azucena & Barreiro-Hurlé, Jesús & Pérez y Pérez, Luis, 2014. "Will consumers use biodiesel? Assessing the potential for reducing CO2 emissions from private transport in Spain," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182802, European Association of Agricultural Economists.
    24. 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.
    25. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2017. "Public's willingness to pay a premium for bioethanol in Korea: A contingent valuation study," Energy Policy, Elsevier, vol. 101(C), pages 20-27.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:32:y:2010:i:1:p:121-128. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/eneco .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.