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Consumer Willingness To Pay for Proenvironmental Attributes of Biogas Digestate-Based Potting Soil

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  • Carsten Herbes

    (Institute for International Research on Sustainable Management and Renewable Energy (ISR), Nuertingen-Geislingen University, Neckarsteige 6-10, 72622 Nuertingen, Germany)

  • Johannes Dahlin

    (Institute for International Research on Sustainable Management and Renewable Energy (ISR), Nuertingen-Geislingen University, Neckarsteige 6-10, 72622 Nuertingen, Germany)

  • Peter Kurz

    (BMS Marketing Research + Strategy GmbH, Landsberger Str. 487, 81241 Munich, Germany)

Abstract

Biogas from anaerobic digestion has become an important element in the renewable energy portfolio of many countries. In anaerobic digestion, digestate is produced as a byproduct. This could be used to produce fertilizers and potting soils for home gardeners substituting mineral fertilizers or peat-based products. However, this depends on consumer willingness to pay (WTP) for such products, which we investigate in this study. To this end, we conducted a discrete choice experiment (DCE) with 507 private consumers. From the 6084 decisions made, we derived Bayesian part-worth utilities using a preference share model and so calculated the WTP for different proenvironmental attributes of potting-soil products. We also assessed the influence of proenvironmental attitudes on the WTP. We discovered five distinct consumer groups in our respondents. Some show a significant WTP for proenvironmental attributes such as “organic”, “peat free”, and “without guano”. Three descriptions of digestate as a “renewable resource”, a “fermentation residue”, or a “biogas residue” elicited three markedly different WTP responses across all classes, with “renewable resource” garnering the highest WTP and “biogas residue” the lowest. Consumers with a stronger proenvironmental attitude exhibited a higher WTP for proenvironmental attributes. Our results can help marketers of digestate-based potting soils discover suitable price points for their products and design differentiated pricing strategies across consumer groups.

Suggested Citation

  • Carsten Herbes & Johannes Dahlin & Peter Kurz, 2020. "Consumer Willingness To Pay for Proenvironmental Attributes of Biogas Digestate-Based Potting Soil," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6405-:d:396589
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    2. Rilling, Benedikt & Kurz, Peter & Herbes, Carsten, 2024. "Renewable gases in the heating market: Identifying consumer preferences through a Discrete Choice Experiment," Energy Policy, Elsevier, vol. 184(C).

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