Applying the Theory of Consumption Values to Explain Drivers’ Willingness to Pay for Biofuels

Suhaiza Zailani, Mohammad Iranmanesh, Sunghyup Sean Hyun and Mohd Helmi Ali
Additional contact information
Suhaiza Zailani: Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur 50603, Malaysia
Mohammad Iranmanesh: Graduate School of Business, Universiti Sains Malaysia, Penang 11800, Malaysia
Sunghyup Sean Hyun: School of Tourism, Hanyang University, Seoul 133-791, Korea
Mohd Helmi Ali: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Selangor 43600, Malaysia

Sustainability, 2019, vol. 11, issue 3, 1-13

Abstract: The transportation sector has dominated global fuel consumption and as a result, greenhouse gas emissions have risen at an alarming rate. As a consequence, many countries have adopted policies and strategies to diversify their fuel sources in the transportation sector. Biofuel is one of the potential substitution fuels that has attracted the attention of both researchers and policy makers. Public acceptance of biofuels is one of the major challenges for the implementation of biofuel blends in transportation. To determine the influence of different values that affect drivers’ willingness to pay for biofuels, the theory of consumption values is applied in the present research. The data were gathered by distributing questionnaires to 343 Malaysian people with driving licences and access to cars. The data were analysed using the partial least squares technique. The results of the analysis revealed that functional values, specific condition, emotional values and novelty seeking were among the main factors that influence drivers’ willingness to pay for biofuels. Social values were shown to not be a significant factor. The results of the study contribute to the literature by testing the relationship between consumption values and willingness to pay for biofuels. The information provided in the present research might be beneficial for policy makers in modifying tactics and strategies towards the successful promotion of the usage of biofuels in developing countries.

Keywords: biofuels; willingness to pay; consumption values; Malaysia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://www.mdpi.com/2071-1050/11/3/668/pdf (application/pdf)
https://www.mdpi.com/2071-1050/11/3/668/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:3:p:668-:d:201263

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().