Consumer?s Willingness to Pay for Gasohol E100 in Chiang Mai Province and Nakhon Ratchasima Province

Pacharaporn Arkornsakul (), Woraphon Yamaka () and Sombat Singkharat ()
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Pacharaporn Arkornsakul: Faculty of management sciences,Chiang Mai Rajabhat University
Woraphon Yamaka: Faculty of Economics Chiang Mai University
Sombat Singkharat: Faculty of management sciences,Chiang Mai Rajabhat University

No 2704676, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The purposes of this research was conducted to study the behavior of consumers who use gasohol and their willingness to pay for it and also to determine factors that influence consumer to pay for gasohol E100 in Chiang Mai and Nakhon Ratchasima Province. Contingent Valuation Method (CVM) was adopted as a hypothetical situation in the form of questionnaires which consists of double bounded dichotomous choice. Maximum Likelihood Estimation (MLE) was the method of analysis used and willingness to pay for gasohol by using Generalized Ordered Logit Model. Stata is needed for collecting data. The result of research found out that due to 800 samples from two sample group (Chiang Mai 400 samples and Nakhon Ratchasima 400 samples) to compare the willingness to pay for gasohol E100. It is discovered that most consumers was unwillingness to pay for the second gasohol quotation which was lower 32.50 Bath per liter due to most consumer were unconvinced the quality of gasohol E100. The measurement of willingness to pay for gasohol E100 average was 30.64 baths per liter in Chiang Mai group and 27.12 baths per liter in Nakhon Ratchasima group. In addition, attitude toward the environment is one of all factor are determining the willingness of consumers to pay for gasohol E100. Gasohol E100 is unknown among the majority of car users. Thailand Government should carry out promote and inform people about the benefits and drawbacks of gasohol E100 and should research on it. It should be supported as a short term and long term study. As a consequence, consumers will understand and be confident in using gasohol E100. This will change willingness of consumers to pay for gasohol E100

Keywords: Willingness to pay; Gasohol E100; Energy (search for similar items in EconPapers)
JEL-codes: C25 D10 Q58 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2015-09
New Economics Papers: this item is included in nep-dcm, nep-mkt and nep-sea
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Published in Proceedings of the Proceedings of the 18th International Academic Conference, London, Sep 2015, pages 102-111

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:2704676

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