Willingness to Pay for Emission Reductions with E85
By
Kimberly Jensen, Adrienne Marra, Christopher Clark and Burton English*
*Professor, Graduate Research Assistant, Associate Professor, and Professor, Department of Agricultural and Resource Economics, Contact information: Dr. Kim Jensen, 302 Morgan Hall, 2621 Morgan Circle, The University of Tennessee, Knoxville, TN 37996, Ph: 865-974-7481, email:
[email protected]
Poster prepared for presentation at the Agricultural & Applied Economics Association 2010 AAEA,CAES, & WAEA Joint Annual Meeting, Denver, Colorado, July 25-27, 2010
Copyright 2010 by [authors]. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.
Kimberly Jensen, Adrienne Marra, Christopher Clark and Burton English
Research Methods The Choice Experiment • Conducted through national online survey of members of Knowledge Networks’ KnowledgePanel • Survey fielded in January, 2009 to panel members who were car owners and age 18 or older. • Respondents participated in a contingent choice exercise in which they were asked to choose between regular gasoline and three varieties of E85 (85% ethanol and 15% gasoline) that differed in terms of price, level of emission reductions, availability nearby, and percent imported. Each respondent was asked to complete 14 exercises, i resulting lti in i a total t t l off 34,980 34 980 observations b ti in i the th model. d l
Estimated Random Parameters Logit for Emissions Reduction Variable Fuel Price Means Imported
Definition Cents per mile (6.2, (6 2 6.6, 6 6 7.0, 7 0 7.7, 7 7 8.0) 8 0)
10%, 33%, 50%, and 67% imported fuel Emission reduction compared with regular gas (0%, 10%, 50%, and 73% reductions compared with E0) Inconvenience 0, 2, or 5 minutes out of way E85 1 if E85, 0 if regular gasoline Interactions with Emissions Reductions: Age Age of respondent in years Female 1 if female, 0 otherwise Income < $25K 1 if income less than $25K, otherwise $25K
