IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v47y2015icp18-24.html
   My bibliography  Save this article

Monetized value of the environmental, health and resource externalities of soy biodiesel

Author

Listed:
  • Winden, Matthew
  • Cruze, Nathan
  • Haab, Tim
  • Bakshi, Bhavik

Abstract

This study monetizes the life cycle environmental damage, human health risk, and resource depletion externalities associated with the production and use of biodiesel fuels from soybean feedstock. Applying a framework that couples life cycle damage measurements with social preferences elicited from a conjoint choice experiment allows for comparison of petrodiesel and biodiesel's external damages. The results of the study reveal that production and consumption of soybean based biodiesels produce improvements in environmental, health and resource impacts of $0.27 per gallon relative to petrodiesel for a 20% blend and $3.14 per gallon for a 100% blend.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:eneeco:v:47:y:2015:i:c:p:18-24
    DOI: 10.1016/j.eneco.2014.10.019
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988314002643
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2014.10.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Solomon, Barry D. & Georgianna, Thomas D., 1987. "Optimal subsidies to new energy sources," Energy Economics, Elsevier, vol. 9(3), pages 183-189, July.
    2. Hu, Zhiyuan & Tan, Piqiang & Yan, Xiaoyu & Lou, Diming, 2008. "Life cycle energy, environment and economic assessment of soybean-based biodiesel as an alternative automotive fuel in China," Energy, Elsevier, vol. 33(11), pages 1654-1658.
    3. Rajagopal, Deepak & Zilberman, David, 2007. "Review of environmental, economic and policy aspects of biofuels," Policy Research Working Paper Series 4341, The World Bank.
    4. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
    5. 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.
    6. Savvanidou, Electra & Zervas, Efthimios & Tsagarakis, Konstantinos P., 2010. "Public acceptance of biofuels," Energy Policy, Elsevier, vol. 38(7), pages 3482-3488, July.
    7. 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.
    8. Wassell, Charles Jr. & Dittmer, Timothy P., 2006. "Are subsidies for biodiesel economically efficient?," Energy Policy, Elsevier, vol. 34(18), pages 3993-4001, December.
    9. Salvi, B.L. & Panwar, N.L., 2012. "Biodiesel resources and production technologies – A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3680-3689.
    10. Demirbas, Ayhan, 2009. "Political, economic and environmental impacts of biofuels: A review," Applied Energy, Elsevier, vol. 86(Supplemen), pages 108-117, November.
    11. Delucchi, Mark, 2006. "Lifecycle Analyses of Biofuels," Institute of Transportation Studies, Working Paper Series qt1pq0f84z, Institute of Transportation Studies, UC Davis.
    12. Carriquiry, Miguel A. & Du, Xiaodong & Timilsina, Govinda R., 2011. "Second generation biofuels: Economics and policies," Energy Policy, Elsevier, vol. 39(7), pages 4222-4234, July.
    13. 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.
    14. Cuevas-Cubria, Clara, 2009. "Assessing the environmental externalities from biofuels in Australia," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47624, Australian Agricultural and Resource Economics Society.
    15. 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.
    16. Vollebergh, Herman, 1997. "Environmental externalities and social optimality in biomass markets: waste-to-energy in The Netherlands and biofuels in France," Energy Policy, Elsevier, vol. 25(6), pages 605-621, May.
    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. Halimatussadiah, A. & Nainggolan, D. & Yui, S. & Moeis, F.R. & Siregar, A.A., 2021. "Progressive biodiesel policy in Indonesia: Does the Government's economic proposition hold?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    2. Wirawan, Soni S. & Solikhah, Maharani D. & Setiapraja, Hari & Sugiyono, Agus, 2024. "Biodiesel implementation in Indonesia: Experiences and future perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    3. Sylwia Roszkowska & Natalia Szubska-Włodarczyk, 2022. "What are the barriers to agricultural biomass market development? The case of Poland," Environment Systems and Decisions, Springer, vol. 42(1), pages 75-84, March.
    4. Wang, Yihan & Chen, Chen & Tao, Yuan & Wen, Zongguo & Chen, Bin & Zhang, Hong, 2019. "A many-objective optimization of industrial environmental management using NSGA-III: A case of China’s iron and steel industry," Applied Energy, Elsevier, vol. 242(C), pages 46-56.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baral, Nabin & Rabotyagov, Sergey, 2017. "How much are wood-based cellulosic biofuels worth in the Pacific Northwest? Ex-ante and ex-post analysis of local people's willingness to pay," Forest Policy and Economics, Elsevier, vol. 83(C), pages 99-106.
    2. Shin, Jungwoo & Hwang, Won-Sik, 2017. "Consumer preference and willingness to pay for a renewable fuel standard (RFS) policy: Focusing on ex-ante market analysis and segmentation," Energy Policy, Elsevier, vol. 106(C), pages 32-40.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. Kwabena Krah & Daniel R Petrolia & Angelica Williams & Keith H Coble & Ardian Harri & Roderick M Rejesus, 2018. "Producer Preferences for Contracts on a Risky Bioenergy Crop," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(2), pages 240-258.
    8. Hakan Eggert & Mads Greaker, 2014. "Promoting Second Generation Biofuels: Does the First Generation Pave the Road?," Energies, MDPI, vol. 7(7), pages 1-16, July.
    9. Moschini, GianCarlo & Cui, Jingbo & Lapan, Harvey E., 2012. "Economics of Biofuels: An Overview of Policies, Impacts and Prospects," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(3), pages 1-28, December.
    10. Schillo, R. Sandra & Isabelle, Diane A. & Shakiba, Abtin, 2017. "Linking advanced biofuels policies with stakeholder interests: A method building on Quality Function Deployment," Energy Policy, Elsevier, vol. 100(C), pages 126-137.
    11. 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.
    12. Janda, Karel & Kristoufek, Ladislav & Zilberman, David, "undated". "Biofuels: review of policies and impacts," CUDARE Working Papers 120415, University of California, Berkeley, Department of Agricultural and Resource Economics.
    13. Balogh, P. & Bai, A. & Popp, J. & Huzsvai, L. & Jobbágy, P., 2015. "Internet-orientated Hungarian car drivers’ knowledge and attitudes towards biofuels," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 17-26.
    14. 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, vol. 2(3), pages 1-17, July.
    15. Li, Tongzhe & McCluskey, Jill J., 2017. "Consumer preferences for second-generation bioethanol," Energy Economics, Elsevier, vol. 61(C), pages 1-7.
    16. Curci, Ylenia & Mongeau Ospina, Christian A., 2016. "Investigating biofuels through network analysis," Energy Policy, Elsevier, vol. 97(C), pages 60-72.
    17. Hertel, Thomas W. & Tyner, Wallace E. & Birur, Dileep K., 2008. "Biofuels for all? Understanding the Global Impacts of Multinational Mandates," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6526, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Van Dael, Miet & Lizin, Sebastien & Swinnen, Gilbert & Van Passel, Steven, 2017. "Young people’s acceptance of bioenergy and the influence of attitude strength on information provision," Renewable Energy, Elsevier, vol. 107(C), pages 417-430.
    19. Cansino, J.M. & Pablo-Romero, M.del P & Román, R. & Yñiguez, R., 2012. "Promotion of biofuel consumption in the transport sector: An EU-27 perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6013-6021.
    20. Ji, Yongjie & Rabotyagov, Sergey & Kling, Catherine L., 2014. "Crop Choice and Rotational Effects: A Dynamic Model of Land Use in Iowa in Recent Years," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170366, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Biofuels; Biodiesel; Willingness-to-pay; External cost; Externalities;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    Statistics

    Access and download statistics

    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:47:y:2015:i:c:p:18-24. See general information about how to correct material in RePEc.

    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 bibliographic 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.