Factors Affecting Farmers' Willingness to Pay for Jatropha Biodiesel
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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Uva Wellassa University of Sri Lanka
Abstract
Sri Lanka in its principle policy aims to produce at least 20% of energy requirement by
renewable energy source by 2020. Still not much attention has been paid on bio fuels.
Jatropha curcas L. is found to be a potential alternative source of renewable energy
since its cultivation and oil extraction contribute to sustainable development, poverty
alleviation, combating of desertification, reduction of greenhouse gas emissions and
women empowerment in developing countries (Pushpakumara et al, 2008, and Francis
et al, 2005). Jatropha has various socio-economic benefits which makes it more
economical when cultivated on commercial scale. Like other vegetable oils, Jatropha
oil can be used directly in modified diesel engines for automobile applications. Its
adaptability to marginal conditions is an advantageous feature, which other oil
producing crops do not have (Pushpakumara et al, 2008), thus it has the ability to
reclaim problematic lands and restore eroded areas (Francis et al 2005). Jatropha
originated biodiesel is less expensive to produce than other energy crops such as
rapeseed and soybeans. This study looks at the demand for Jatropha produced
biodiesel. Initially, it is unlikely to be used as a substitute for diesel. Jatropha biodiesel
or Straight oil can be used at village level to operate farm machinery and for day to day
activities at small scale. If there exist a willingness from farmers to use biodiesel at
least in short term then Jatropha could be used as an additional income source. By-
products of Jatropha biodiesel can also be sold. Thus this study looks at what factors
affect rural farmers' willingness to pay for Jatropha biodiesel.
Methodology
Welfare estimation is based on Indirect utility and Minimum expenditure functions. Lancaster's
(1971) theoretical model for demand estimation is expanded to include other empirical variables.
Contingent Valuation Method (CVM) can be viewed as a direct measure of welfare change.
Description
Keywords
Agriculture, Export Agriculture, Crop Production, Crop Production Technology, Bio Diesel, Environmental Science