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How does farmers' current usage of crop straws influence the willingness-to-accept price to sell?

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  • Zuo, Alec
  • Hou, Lingling
  • Huang, Zeying

Abstract

To further develop the second-generation biofuel industry, both government and business sectors need to better comprehend the full costs of buying crop straws from farmers – understanding transportation and baling costs alone is insufficient. Due to the limited market activity of crop straws, this paper uses the contingent valuation method to elicit farmers' willingness-to-accept (WTA) price to sell their crop straws in northeast China. The results from finite mixed models showed that the estimated WTA for maize straw was 9.6 yuan/ton, 43.2 yuan/ton and 83.2 yuan/ton across different farm groups. For rice straw, the WTA for the first farm group was 51 yuan/ton and 204 yuan/ton for the second group. Our results also show that both rice and maize farmers place a higher price on crop straw if it is used in more productive ways, such as for domestic fuel, animal feed or selling; but place a lower price when it is burnt as crop residue in the field.

Suggested Citation

  • Zuo, Alec & Hou, Lingling & Huang, Zeying, 2020. "How does farmers' current usage of crop straws influence the willingness-to-accept price to sell?," Energy Economics, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:eneeco:v:86:y:2020:i:c:s0140988319304360
    DOI: 10.1016/j.eneco.2019.104639
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    Cited by:

    1. Gérard, Maxence & Jayet, Pierre-Alain, 2023. "European farmers’ response to crop residue prices and implications for bioenergy policies," Energy Policy, Elsevier, vol. 177(C).
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    Keywords

    Crop residue; CVM; WTA; China;
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