Skip to content
Research Article Open access CC BY 4.0

Households’ Willingness to Pay for Biofuel Gel in Lagos State, Nigeria: A Contingent Valuation Study

Daniel A. Olawamide, Olaniran A. Thompson

Journal of Energy Research and Reviews · pp. 35–43 · Published 26 Feb 2020

10.9734/jenrr/2020/v4i230123

Abstract

The study was carried out to determine the willingness to pay (WTP) for Biofuel gel among households in Lagos State, Nigeria. A total of one hundred and seventy-five households using multiple sampling procedure were interviewed using a well-structured questionnaire. Data were analysed using descriptive statistics and Logit regression model. The study showed that the mean willingness to pay for Biofuel gel was ₦280 (US $0.78) per litre. The study further revealed that there was significant relationship between the socio-economic characteristics of the households and their willingness to pay for biofuel gel. Variables such as bid amount and household income had significant effect on the willingness to pay for biofuel at 1%. Bid amount had a negative coefficient of -0.0233655 on willingness to pay for biofuel gel. The study therefore recommends that price policies can be implemented in the form of price subsidies to foster the consumption of biofuel gel (clean fuels) in the study area, as respondents are more sensitive when it comes to their wallets and had identified high cost of the product as a major constraint for not consuming biofuel gel.

Households biofuel gel willingness to pay Logit consumption Nigeria.

References (18)

  1. 1 When will fossil fuel reserves be diminished? [DOI]
  2. 2 Report of NOAA Panel on Contingent Valuation
  3. 3 Biofuels sources, biofuel policy, biofuel economy and global biofuel projections [DOI]
  4. 4 Energy access in Africa: Challenges ahead [DOI]
  5. 5 Household fuel use in developing countries: Review of theory and evidence [DOI]
  6. 6 Social acceptance of solar energy technologies in China—End users’ perspective [DOI]
  7. 7 Rural household fuel energy transition: Evidence from Giwa LGA Kaduna State, Nigeria [DOI]
  8. 8 Renewables in the energy transition: Evidence on solar home systems and lighting fuel choice in Kenya [DOI]
  9. 9 Household level fuel switching in rural Hubei [DOI]
  10. 10 Renewable and Sustainable Energy Review [DOI]
  11. 11 The determinants of household energy demand in rural Beijing: Can environmentally friendly technologies be effective? [DOI]
  12. 12 Consumer attitudes towards renewable energy in China—The case of Shanghai [DOI]
  13. 13 Consumers’ Willingness to Pay a Premium for Eco-Labeled LED TVs in Korea: A Contingent Valuation Study [DOI]
  14. 14 Consumers’ Perception and Willingness to Pay for Organic Leafy Vegetables in Urban Oyo State, Nigeria [DOI]
  15. 15 Villagers Willingness to Pay for Forest Conservation in Ibadan, Oyo State, Nigeria [DOI]
  16. 16 SIDS-Focused Green Economy: An Analysis of Challenges and Opportunities [DOI]
  17. 17 An estimation of the willingness to pay for biodiesel: a pilot study of diesel consumers [DOI]
  18. 18 Consumers’ willingness to pay for biodiesel in Spain [DOI]

Cited by 0

No indexed citations yet.

Related research

Article metrics

Real usage data collected on this platform.

30

Page views

0

PDF downloads

3

Outbound clicks

0

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.