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How does farmers' current usage of crop straws influence the willingness-to-accept price to sell?

Alec Zuo (), Lingling Hou and Zeying Huang

Energy Economics, 2020, vol. 86, issue C

Abstract: To further develop the second-generation biofuel industry, both government and business sectors need to better comprehend the full costs of buying crop straws from farmers – understanding transportation and baling costs alone is insufficient. Due to the limited market activity of crop straws, this paper uses the contingent valuation method to elicit farmers' willingness-to-accept (WTA) price to sell their crop straws in northeast China. The results from finite mixed models showed that the estimated WTA for maize straw was 9.6 yuan/ton, 43.2 yuan/ton and 83.2 yuan/ton across different farm groups. For rice straw, the WTA for the first farm group was 51 yuan/ton and 204 yuan/ton for the second group. Our results also show that both rice and maize farmers place a higher price on crop straw if it is used in more productive ways, such as for domestic fuel, animal feed or selling; but place a lower price when it is burnt as crop residue in the field.

Keywords: Crop residue; CVM; WTA; China (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:86:y:2020:i:c:s0140988319304360

DOI: 10.1016/j.eneco.2019.104639

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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