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Consumer preferences for second-generation bioethanol

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  • Li, Tongzhe
  • McCluskey, Jill J.

Abstract

This study investigates the consumer responses toward fuel from second-generation, nature-inspired lignocellulose processing systems. Data was collected via in-person consumer surveys across in three major U.S. cities with two different information treatments. A dichotomous-choice contingent valuation methodology is utilized to estimate consumers' willingness to pay for this product and analyze factors that affect consumer choice. The results suggest that the average respondent was willing to pay an 11% premium for second-generation nature-inspired bioethanol compared to conventional fuel. The willingness to pay was the highest in Portland, Oregon (17%), followed by Minneapolis (9%) and then Boston (8%). Driving distance was found to have a negative effect on consumer willingness to pay. Consumers who purchase more organic foods were more willing to pay a premium for the product. Risk attitude had heterogeneous effects in different locations. The effect of information regarding the second-generation, nature-inspired lignocellulose process was found to be significantly positive.

Suggested Citation

  • Li, Tongzhe & McCluskey, Jill J., 2017. "Consumer preferences for second-generation bioethanol," Energy Economics, Elsevier, vol. 61(C), pages 1-7.
    • Handle: RePEc:eee:eneeco:v:61:y:2017:i:c:p:1-7
    DOI: 10.1016/j.eneco.2016.10.023
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    5. Khachatryan, Hayk & Wei, Xuan & Rihn, Alicia, 2021. "Effects of pollinator related information on consumer preference for neonicotinoid labeling," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(6), April.
    6. Li, Tongzhe & Fooks, Jacob & Messer, Kent D., 2017. "Residents’ Preferences in Adopting Water Runoff Management Practices: Examining the Effect of Behavioral Nudges in a Field Experiment," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259127, Agricultural and Applied Economics Association.
    7. Garcia, Teresa Cristina & Durand-Morat, Alvaro & Yang, Wei & Popp, Michael & Schreckhise, William, 2022. "Consumers’ willingness to pay for second-generation ethanol in Brazil," Energy Policy, Elsevier, vol. 161(C).
    8. Simone Wurster & Philipp Heß & Michael Nauruschat & Malte Jütting, 2020. "Sustainable Circular Mobility: User-Integrated Innovation and Specifics of Electric Vehicle Owners," Sustainability, MDPI, vol. 12(19), pages 1-20, September.
    9. Jerath, Kinshuk & Fader, Peter S. & Hardie, Bruce G.S., 2016. "Customer-base analysis using repeated cross-sectional summary (RCSS) data," European Journal of Operational Research, Elsevier, vol. 249(1), pages 340-350.
    10. Anthony PARIS & Pascal GASTINEAU & Pierre-Alexandre MAHIEU & Benoît CHEZE, 2020. "Citizen involvement in the energy transition: Highlighting the role played by the spatial heterogeneity of preferences in the public acceptance of biofuels," LEO Working Papers / DR LEO 2828, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    11. Mamadzhanov, Alisher & McCluskey, Jill J. & Li, Tongzhe, 2019. "Willingness to pay for a second-generation bioethanol: A case study of Korea," Energy Policy, Elsevier, vol. 127(C), pages 464-474.
    12. Simone Wurster, 2021. "Creating a Circular Economy in the Automotive Industry: The Contribution of Combining Crowdsourcing and Delphi Research," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    13. Byrne, Rosemary & Byrne, Susan & Ryan, Ray & O’Regan, Bernadette, 2017. "Applying the Q-method to identify primary motivation factors and barriers to communities in achieving decarbonisation goals," Energy Policy, Elsevier, vol. 110(C), pages 40-50.
    14. Simone Wurster & Rita Schulze, 2020. "Consumers’ Acceptance of a Bio-circular Automotive Economy: Explanatory Model and Influence Factors," Sustainability, MDPI, vol. 12(6), pages 1-22, March.
    15. Li, Tongzhe & Fooks, Jacob R. & Messer, Kent D. & Ferraro, Paul J., 2021. "A field experiment to estimate the effects of anchoring and framing on residents’ willingness to purchase water runoff management technologies," Resource and Energy Economics, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Consumer preferences; Second-generation bioethanol; Contingent valuation;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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    1. Consumer preferences for second-generation bioethanol (Energy Economics 2017) in ReplicationWiki

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