Estimating Producers’ Willingness to Supply Switchgrass as a Bioenergy Crop

Mustapha Alhassan, Richard Perrin and Lilyan Fulginiti

No 205281, 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California from Agricultural and Applied Economics Association

Abstract: This paper used the contingent valuation (CV) approach to estimate the willingness of potential producers in selected counties in 12 states in the Midwest region of U.S. to supply switchgrass, and also to lease out land for switchgrass production. We used the dichotomous choice (DC) format and a linear random utility probit model is employed to estimate the willingness to accept (WTA) in both cases in terms of revenue per acre per year. From the preliminary results of the willingness to produce, the estimated mean WTA for region 1(selected counties in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan) is $314.62 per acre, that of region 2 (selected counties in South Dakota, Nebraska, Kansas, Missouri, Indiana, and Ohio) is $462.10 per acre, and that of region 3 (selected counties in Illinois, Iowa, Minnesota, and Wisconsin) is $451.75 per acre. From the willingness to lease out land for switchgrass production results, the estimated mean WTA for region 1 is $257.45 per acre, $384.39 per acre for region 2, and $354.74 per acre for region 3.

Keywords: Production Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 2
Date: 2015
New Economics Papers: this item is included in nep-dcm and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea15:205281

DOI: 10.22004/ag.econ.205281

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