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Consumer Preferences for Second-Generation Bioethanol

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  • Li, Tongzhe
  • McCluskey, Jill J.

Abstract

In this study, we investigate the consumer response toward fuel from second-generation, nature-inspired lignocellulose processing systems. We conduct consumer surveys with two different information treatments. We utilize a dichotomous-choice contingent valuation methodology to estimate willingness to pay for this product and analyze factors that affect consumer choice. The results suggest that the average respondent is willing to purchase second-generation bioethanol with a 4% discount compared to conventional fuel. Some demographic variables and driving behavior are found to have significant effects on consumer willingness to pay. The effect of information regarding the second-generation, nature-inspired lignocellulose process is found to be insignificant.

Suggested Citation

  • Li, Tongzhe & McCluskey, Jill J., 2014. "Consumer Preferences for Second-Generation Bioethanol," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170203, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:170203
    DOI: 10.22004/ag.econ.170203
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    Cited by:

    1. Walter, Kara A. & Thacher, Jennifer & Chermak, Janie M., 2023. "Examining willingness to pay for energy futures in a fossil and renewable energy-rich locale," Energy Policy, Elsevier, vol. 181(C).
    2. 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.
    3. 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.
    4. 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.
    5. Li, Tongzhe & McCluskey, Jill J. & Messer, Kent D., 2018. "Ignorance Is Bliss? Experimental Evidence on Wine Produced from Grapes Irrigated with Recycled Water," Ecological Economics, Elsevier, vol. 153(C), pages 100-110.
    6. Prieto, Marc & Caemmerer, Barbara & Baltas, George, 2015. "Using a hedonic price model to test prospect theory assertions: The asymmetrical and nonlinear effect of reliability on used car prices," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 206-212.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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).
    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/Household Economics; Demand and Price Analysis; Resource /Energy Economics and Policy;
    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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