US consumers are willing to pay a premium of about 11% for second-generation bioethanol over conventional fuel, according to a research by Washington State University (WSU).
The aim of the study was to find out whether people would buy the new biofuels that are made from non-food resources. It was conducted in three cities in different regions of the country. In Portland, Oregon, the average premium participants would pay was 17%, while in Minneapolis and Boston it was 9% and 8%, respectively.
“We were surprised the premium was that significant,” Jill McCluskey, WSU professor in the School of Economic Sciences, said in an announcement last week. According to her, the study shows there clearly is a market for second-generation biofuels.
Half of the people were given information about these biofuels before they were surveyed and the results showed they were more willing to pay a greater premium.
Provided by SeeNews exclusively for Essentica.
US consumers ready to pay more for second-generation biofuels – study