Study Shows Consumers are Willing to Pay for Biofuels

A study conducted by researchers from the University of Delaware and Washington State University investigated the consumer responses toward fuel from second-generation, lignocellulose processing systems. Data was collected via in-person consumer surveys across three major cities in the USA with two different information treatments. The survey estimated consumers' willingness to pay for this product and analyze factors that affect their choice.

The results suggest that the average respondent was willing to pay an 11% premium for second-generation bioethanol compared to conventional fuel. The willingness to pay was the highest in Portland, Oregon (17%), followed by Minneapolis (9%) and then Boston (8%). However, driving distance was found to have a negative effect on consumer willingness to pay.

Consumers who purchase more organic foods were also found to be more willing to pay a premium for the product. The effect of information regarding the second-generation, lignocellulose process was also found to be significantly positive.