The research, "Consumer Preferences for Second-Generation Bioethanol," was published in November in the journal Energy Economics, and was reported by Phys.org on Thursday.
Jill McCluskey, the WSU Economic Studies professor who oversaw the study said the goal of the study was to examine attitudes about biofuel in different regions of the country, and she said the researchers were surprised to find consumers willing to pay so high a premium.
The team looked specifically at so-called "second generation" biofuels made from biological non-food sources in an attempt to assess the market for them.
The conclusion of the study was a resounding "yes."
McCluskey and her co-author, recent WSU Ph.D. graduate Tongzhe Li, conducted surveys in Portland, Ore., Minneapolis and Boston.
In Portland, the average amount participants would pay for second generation biofuel over conventional fuel was 17 percent, while in Minneapolis and Boston the averages were 9 percent and 8 percent, respectively.
The researchers asked participants if they would be willing to pay a certain amount for the product. If they said no, researchers offered a discount and asked if participants would pay that amount. However, if respondents said yes, researchers asked if they would be willing to pay a little more for the product.
Before they were surveyed, half of the participants were given information about second generation biofuels. Those participants were more willing to pay a greater premium, which suggests that marketing the benefits of the new biofuels would improve consumers' perceptions, the researchers said.
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