Consumer Willingness To Pay for Proenvironmental Attributes of Biogas Digestate-Based Potting Soil

Carsten Herbes, Johannes Dahlin and Peter Kurz
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Carsten Herbes: Institute for International Research on Sustainable Management and Renewable Energy (ISR), Nuertingen-Geislingen University, Neckarsteige 6-10, 72622 Nuertingen, Germany
Johannes Dahlin: Institute for International Research on Sustainable Management and Renewable Energy (ISR), Nuertingen-Geislingen University, Neckarsteige 6-10, 72622 Nuertingen, Germany
Peter Kurz: BMS Marketing Research + Strategy GmbH, Landsberger Str. 487, 81241 Munich, Germany

Sustainability, 2020, vol. 12, issue 16, 1-19

Abstract: Biogas from anaerobic digestion has become an important element in the renewable energy portfolio of many countries. In anaerobic digestion, digestate is produced as a byproduct. This could be used to produce fertilizers and potting soils for home gardeners substituting mineral fertilizers or peat-based products. However, this depends on consumer willingness to pay (WTP) for such products, which we investigate in this study. To this end, we conducted a discrete choice experiment (DCE) with 507 private consumers. From the 6084 decisions made, we derived Bayesian part-worth utilities using a preference share model and so calculated the WTP for different proenvironmental attributes of potting-soil products. We also assessed the influence of proenvironmental attitudes on the WTP. We discovered five distinct consumer groups in our respondents. Some show a significant WTP for proenvironmental attributes such as “organic”, “peat free”, and “without guano”. Three descriptions of digestate as a “renewable resource”, a “fermentation residue”, or a “biogas residue” elicited three markedly different WTP responses across all classes, with “renewable resource” garnering the highest WTP and “biogas residue” the lowest. Consumers with a stronger proenvironmental attitude exhibited a higher WTP for proenvironmental attributes. Our results can help marketers of digestate-based potting soils discover suitable price points for their products and design differentiated pricing strategies across consumer groups.

Keywords: biogas; biogas digestate; biogas residues; marketing; price; discrete choice experiment; willingness to pay; consumer; potting soil; fertilizer (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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