Rank-Ordered Analysis of Consumer Preferences for the Attributes of a Value-Added Biofuel Co-Product

Biochar is a co-product of the production of advanced biofuels that sequesters carbon when used as a soil amendment. Gardening consumers are a potential market for biochar and their purchase of biochar-amended products could provide biofuel producers with an additional revenue stream. To better understand this opportunity, preferences for the attributes of potting soils amended with biochar were elicited using a best-worst scaling experiment administered in a survey of 880 Tennessee households. The attributes analyzed were whether the biochar was produced in Tennessee, certified as biobased, a coproduct of biofuel production, and produced from food waste, wood waste, agricultural by-product, or a non-food energy crop feedstock. The effects of consumer demographics and attitudes on preferences for the biochar attributes were also estimated. We tested the independence of irrelevant alternative assumption using a structured covariance matrix designed specifically to the survey's structure. The results suggest that the attributes most likely to influence favorably consumers are production from agricultural by-product or wood waste feedstock. On the other hand, the attributes least likely to entice consumers are biochar produced in Tennessee or produced as a co-product of renewable fuel.