2011 International Conference on Alternative Energy in Developing Countries and Emerging Economies
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TABLE
IV
E
STIMATES OF COMPENSATION SURPLUS OF BIODIESEL FOR EACH
SCENARIO USING PAIRED COMPARISON APPROACH
Scenario of
percentage
pollution emissions
decreasing
Basic conditional
logit model
Baht (B) and (£)
Conditional logit
model with
interactions
Baht (B) and (£)
2%
5%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0. 69 B (£0.009)
1.72 B (£0.023)
3.44 B (£0.047)
6.87 B (£0.094)
10.31 B (£0.141)
13.74 B (£0.188)
17.18 B (£0.235)
20.62 B (£0.282)
24.05 B (£0.329)
27.49 B (£0.376)
30.93 B (£0.423)
34.36 B (£0.470)
0.75 B (£0.010)
1.88 B (£0.026)
3.76 B (£0.051)
7.51 B (£0.103)
11.27 B (£0.154)
15.03 B (£0.205)
18.78 B (£0.257)
22.54 B (£0.308)
26.30 B (£0.360)
30.05 B (£0.411)
33.81 B (£0.462)
37.57 B (£0.514)
Significant at 5% level
TABLE V
E
STIMATES OF
W
ILLINGNESS TO
P
AY FOR
V
ARIOUS
S
CENARIOS BY
U
SING
P
AIRED
C
OMPARISON
M
ETHOD
Scenario Fuel type Operatio
n cost
Cetane
number
Pollution
emissions
WTP Baht and £
Basic
CL model
CL with
interaction
model
Current
situation
Diesel
Like
present
Like
present
Like
present
Scenario
1
Biodiesel 2% less Like
present
10%
less
18.0591 B
(£0.2469)
17.8001 B
(£0.2434)
Scenario
2
Biodiesel 5% less 7%
better
22%
less
18.1402 B
(£0.2481)
17.8941 B
(£0.2447)
Scenario
3
Biodiesel 5% less 12 %
better
37%
less
18.2095 B
(£0.2490)
17.9747 B
(£0.2458)
Scenario
4
Biodiesel 10% less 15%
better
50%
less
18.2897 B
(£0.2501)
18.0629 B
(£0.2470)
Scenario
5
Biodiesel 10% less 15%
better
64%
less
18.3378 B
(£0.2508)
18.1155 B
(£0.2477)
The modelling results can also be used to estimate
values associated with a range of scenarios resulting from
different fuel characteristics. Thai government managers
can use these value estimates and approximate the value
of any change in operating cost, cetane number and
pollution emissions to determine which scenarios are
likely to have the greatest net benefit for the community.
From the empirical analysis, scenario 5 produced the
highest willingness to pay £0.2477 (18.1155 Baht) by
using the interaction model. Aggregate willingness to pay
can be compared to aggregate costs in a cost-benefit
analysis framework to assess whether the Bangkok
residents are likely to experience a net benefit from
proposed change to management.
IV. C
ONCLUSIONS
Certainly, it is essential that the Thai authorities
consider health impacts of emission pollution and
primarily focus on a solution to the air pollution issue and
encourage the use of alternative fuel with low emissions.
This is because the results of the Bangkok survey
inhabitants
’ o
pinions on environmental problems in
Bangkok illustrate that air pollution is the biggest concern
of the citizens surveyed. The sampled residents in
Bangkok are also very worried about air pollution
problems and believe that the air crisis will have serious
adverse impacts on human health. Moreover, the majority
of the surveyed citizens are able to follow regulations
relating to air pollution produced by vehicles.
The main factors
influencing the households’
willingness to pay for using biodiesel fuel are pollution
emissions and operation costs, £0.0052 and £0.0068 per
litre of fuel, respectively by using PC approach. It implies
that policy-makers and researchers have to develop
biodiesel fuel and other alternative fuels for reducing
pollution emissions because the WTP for biodiesel fuel is
rising when biodiesel fuel is seen to diminish air
pollution. In addition, another factor has to consider for
biodiesel fuel quality is reducing maintenance, repair and
engine-rebuild costs as second priority of individual
preference.
A
CKNOWLEDGMENT
This study was funded by the Energy Policy and
Planning Office (EPPO), Ministry of Energy, Thailand.
However, the views expressed in this article represent
those of the authors alone and remaining errors are the
sole responsibility of the authors.
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