Willingness to pay for biodiesel in Spain: a pilot study for diesel consumers

Abstract

One of the priorities of the European Union is to reduce greenhouse gas emissions in order to contribute significantly to climate change mitigation. The aim of this paper is to analyze consumers’ valuation of one type of renewable energy which is important to reach the European emission reduction targets, biodiesel, and to assess the extra price consumers are willing to pay to use biodiesel instead of conventional diesel. In order to achieve these goals, a market survey has been carried out in Aragón (Spain) to collect primary data from diesel consumers. A choice experiment has been used to assess willingness to pay for biodiesel. Results suggest that the consumers’ level of knowledge of biodiesel is not very high although consumers’ perception of the product is quite favourable because they believe biodiesel is less pollutant and reduces greenhouse gas emissions, compared to conventional diesel. Actual consumption of biodiesel is still very low. However, consumers are willing to pay 5% extra to fill up with biodiesel instead of its conventional counterpart.

Factors affecting drivers' willingness to pay for biofuels: the case of Italy

“…The sample size is consistent with most literature on the topic including studies mentioned in the article, or even larger(Giraldo et al, 2010;Li and McCluskey, 2014;Salvo and Huse, 2013), although there are also works based on larger samples exceeding one thousand respondents(Jensen et al, 2010;Solomon and Johnson, 2009).P. Lanzini et al / Journal of Cleaner Production 112 (2016) 2684e2692…”

“…As regards biodiesel in Europe, empirical evidence is scant and inconclusive. While for instance Giraldo et al (2010) suggest that Spanish consumers have an average WTP for biodiesel of around 5 eurocents per liter (0.054V), Kallas and Gil (2014) found that drivers in Catalonia are not willing to pay any premium for biodiesel.…”

Do the Spanish want biodiesel? A case study in the Catalan transport sector

“…cars are not willing to pay for biodiesel, which seems to be rejected in all the mixtures 499 proposed; this result is contrary to the results obtained by [6], who confirmed that consumers 500 are willing to pay 0.08 Euros/litre and [41] who determined that Spanish users of diesel are 501 willing to pay up to 5% over the price of standard diesel. 502…”

“…The biofuel industry in 2011 was supported 153 with €237 million for ethanol and €1,002 million for biodiesel [26] Jeanty et al [39], and Jeanty and Hitzhusen [40] estimated the WTP for the reduction of air 163 pollution, which is brought about by using biodiesel in the US. In Spain, Giraldo et al [41] and 164…”

Households’ Willingness to Pay for Biofuel Gel in Lagos State, Nigeria: A Contingent Valuation Study

“…In other for biofuel project to be achievable and successful, sufficient information and planning is required to actualize its benefits. It is necessary to know how households' value and support renewable energy source in this case biofuel gel and their Willingness To Pay (WTP) a reasonable price for it is a relevant issue [13].…”