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Willingness to pay for E85 from corn, switchgrass, and wood residues

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  • Jensen, Kimberly L.
  • Clark, Christopher D.
  • English, Burton C.
  • Menard, R. Jamey
  • Skahan, Denise K.
  • Marra, Adrienne C.

Abstract

Willingness to pay (WTP) for E85 (automotive fuel blend of 85% ethanol and 15% gasoline) was estimated from a contingent choice exercise contained in a national survey of consumers. The choice exercise included E85 blends from three different feedstock sources (corn grain, switchgrass, and wood wastes) and an E10 blend (10% ethanol and 90% gasoline) with corn grain as the ethanol feedstock. Results from the study indicate willingness to pay a premium for E85 from switchgrass compared with E10 from corn. Concerns about land use for "food versus fuel" had a negative impact on WTP for E85 from corn grain, while greater concerns about fuel security relative to the environment had a positive impact.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:6:p:1253-1262
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    15. 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.
    16. 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, Boston, Massachusetts 236107, Agricultural and Applied Economics Association.
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