Consumer perceptions of bioenergy

Transcription

1 Consumer perceptions of bioenergy Bioenergy Policy and Markets, 5th of February, 2016 Marja Kolström

2 Consumer A consumer is a person or organization that uses economic services or commodities. In economic systems consumers are utilities expressed in the decision to trade or not

3 Consumer perceptions? sunlightcooking.com/en/problem/ pearsonsofduns.co.uk/should-you-use-householdcoal-in-your-wood-burning-or-multi-fuel-stove/

4 Fuelwood Very closely tied to the quality of life in rural areas of Africa and Asia Closely linked to the household income; utilization of fuelwood is reduced by increasing household income (Burkina Faso, Mozambique) Households with more educated members consume less fuelwood (China) The role of women collecting fuelwood in many parts of the world is very important Arabatzis et al

5 Fuelwood in Greece The main problem in the use of fuelwood is that it requires additional work (transport, storage, etc.) It is easy to find the amount of fuelwood that is needed in the markets Size of house and any change in the use of land from agriculture to forestry play a significant role in the consumption of fuelwood. Arabatzis et al

6 Problem with open fire Indoor smoke from charcoal or wood is a major cause of death in low- and middle-income countries Charcoal and wood are used as cooking fuel by more than 3 billion people worldwide Especially women and children are affected by smoke

7 Content of this lecture Energy consumers in developed countries Results of studies from Europe How consumers behave or what are their perceptions

8 Energy consumption and associated carbon emissions are related to income levels tenure household composition rural/urban location Druckman and Jackson

9 Household energy demand depend on many factors (1/4) type of dwelling, its levels of insulation and the efficiency of the heating mechanism tenure how well insulation has been taken care Druckman and Jackson

10 Type of dwelling (UK) Druckman and Jackson

11 Household energy demand depend on many factors (2/4) choice of internal temperature lifestyle choice (t-shirt or jumper) technical arrangements of home heating systems different temperatures in different rooms kenzo.com missowl.com Druckman and Jackson

12 Household energy demand depend on many factors (3/4) energy use for water heating washing machines lifestyle choice how often wash clothes frequency of and time taken showering grohe.com Druckman and Jackson

13 Household energy demand depend on many factors (4/4) expenditure is generally related to income the energy performance of the dwelling the cost of energy and household income Druckman and Jackson

14 Fuelwood policies, example from France Economic and resource impacts of three fuelwood policies on the French forest sector 1. a fixed-demand contract policy 2. a consumer subsidy for fuelwood consumption 3. a producer subsidy for industrial wood production Caurla et al

15 Consumer subsidies Source: Caurla et al

16 Source: Caurla et al

17 Source: Caurla et al

18 Trade balance Source: Caurla et al

19 Different policies vs consumer (produces, government) Source: Caurla et al

20 Results of the consumer subsidy policy: quite stable policy for forest resources (no over-harvesting) likely to increase imports and to deteriorate the trade balance imply a large and costly windfall effect on consumers consumers benefit from subsidies (welfare) constitute an intermediary option in terms of effectiveness there is no strict dominant policy instrument to stimulate fuelwood consumption have the advantage of being easily accepted by public opinion (since the consumer surplus increases) Caurla et al

21 The implementation of renewable heating technologies (Ireland) Often consumers are required to have access to specialist information and expert knowledge concerning the performance of various technology options, their reliability, associated costs and benefits and compatibility with existing energy systems Kennedy and Basu

22 The implementation of renewable heating technologies (Ireland) Non-economic determinants affecting technology choice, including non-energy benefits performance, reliability, quality systems and design. Kennedy and Basu

23 The implementation of renewable heating technologies (Ireland) Misperceptions surrounding renewable energy technology and improving consumer confidence; technology cost, reliability and performance, technology maturity, impact on energy demand and availability of raw materials / fuels Kennedy and Basu

24 The implementation of renewable heating technologies (Ireland) Crucial determinants of individual preferences are different knowledge, environmental feeling and social class Kennedy and Basu

25 The implementation of renewable heating technologies (Ireland) The decision to deploy renewable energy technology may be driven by two determinants; investment costs and the savings from reduced energy. The household choice is difficult to anticipate due to several uncertainties; future energy prices, information deficits (e.g. hidden costs) Kennedy and Basu

26 Hidden costs Kennedy and Basu

27 Wood pellet market in Austria Consumers are highly exposed to price changes resulting from supply shocks. Policies which support investments in pellet boilers will shift the demand on wood pellets and likely leading to higher prices for consumers. Pellet markets are still rather immature Kristöfel et al

28 Change of woodstove (Oslo, Norway) The city of Oslo has granted subsidies to households who change to new, improved low-emission woodstoves The respondents were satisfied with the new woodstoves They also considered themselves competent to use and maintain the stove Few had problems acquiring fuelwood Nyrud et al

29 Change of woodstove (Oslo, Norway) The intention to continue to use the new woodstove depends on economic benefits, heating performance, perceived time and effort to operate the stove, environmental effects of heating and perceived subjective norm Nyrud et al

30 Change of woodstove (Oslo, Norway) When marketing a modern technology for bioenergy heating, both public authorities and producers should consider issues related to the users perception of subjective norm, such as perceived status of using bioenergy or environmental concerns Nyrud et al

31 Previous examples are about person consumers What about organizations? Municipalities Small enterprises (e.g. farms, greenhouses) Energy production co-operations or companies Next five slides are results of the group discussions

32 Municipality as consumer - perceptions Willingness to pay for certain energy sources Subsidies to implement the new source of energy Public education Advertisement

33 Municipality as consumer - perceptions Poor or rich municipality Possibilities to investment in new technologies

34 Small enterprise as consumer - perceptions The cheapest price Sustainability of the energy The security of feedstock, constant supply The availability of technology If the resources are national to try keep the investment money within the country Reliability and stability of prices Scope of development Does it rise any ethical issues

35 Small enterprise as consumer - perceptions Economical aspects prize of fuel (subsidies, taxes) now and in the future prize of equipment how energy intensive is our end product Ecological aspects do we have take account the surrounding, e.g. the amount of the emitted GHG From what our consumers are willing to pay how much more expensive our local, ecological product can be Security and local employment Can we be sure we are able to by fuel in the future What are the impacts to the local employment?

36 Energy production company as consumer - perceptions Market research (willingness to pay, heating demand) Availability of raw material (potential) Subsidies for investment, production, raw material Public opinion Minimizing risks

37 List of references Arabatzis G., Kitikidou K., Tampakis S. and Soutsas K The fuelwood consumption in a rural area of Greece. Renewable and Sustainable Energy Reviews 16: Caurla S., Delacote, P., Lecocq F. and Barkaoui A., Stimulating fuelwood consuption through public policies: An assessment of economic and resource impacts based on the French Forest Sector Model. Energy Policy 63: Druckman A. and Jackson T Household energy consumption in the UK: a highly geographically and socioeconomically disaggregated model. Energy Policy 36: Kennedy M. and Basu B A study on the implementation of renewable heating technologies in the domestic sector in Ireland with implications on consumers decision-making. Journal of Cleaner Production 44: Kristöfel C., Strasser C., Schmid E. and Morawetz UB The wood pellet market in Austira: Astructureal market model analysis. Energy Policy 88: Nyrud AQ., Roos A., Bingen Sande J Residential bioenergy heating: A study of consumer perceptions of improved woodstoves. Energy Policy 36: Shorrok LD and Utley JI, Domestic Energy Fact File 2003, BRE, Defra and EST, London, UK

38 Thank you! uef.fi