Consumer Preferences and Willingness to Pay for Potting Mix with Biochar

McKenzie Thomas, Kimberly L. Jensen, Dayton Lambert, Burton English, Christopher Clark and Forbes R. Walker
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McKenzie Thomas: Department of Agricultural and Resource Economics, The University of Tennessee, Knoxville, TN 37996, USA
Kimberly L. Jensen: Department of Agricultural and Resource Economics, The University of Tennessee, Knoxville, TN 37996, USA
Forbes R. Walker: Department of Biosystems Engineering and Soil Sciences, The University of Tennessee, Knoxville, TN 37996, USA

Energies, 2021, vol. 14, issue 12, 1-16

Abstract: Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.

Keywords: biochar; consumer preferences; potting mix; biofuels; feedstock (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
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