Overcoming the barriers for biodiesel use in Spain: An analysis of the role of convenience and price

Abstract

The aim of the paper is to analyse biodiesel market acceptance in Spain. In particular, we study the intention to use biodiesel by Spanish diesel car drivers and the factors explaining this intention. To achieve this goal, we developed a model of the intention to use biodiesel based on the Theory of Planned Behaviour but extended in two ways. The first one consists of the inclusion of two new predictors of the intention to use (environmental self-identity and biodiesel knowledge) and the second, the extension of the model to take into account the two barriers in the adoption of biodiesel in the market (potential price premium and limited availability in the petrol stations). This model has been specified as an ordered probit and estimated using data from a survey conducted in Spain. Results indicated that apart from the attitudes towards biodiesel use, the most important factors explaining the intention to use biodiesel are the biodiesel knowledge and the environmental self-identity, in other words, the new predictors in the Theory of Planned Behaviour model. In addition, the effects of all the factors (attitudes, subjective norms, perceived behavioural control, biodiesel knowledge, environmental self-identity and socio-demographic characteristics) on the intention to use were different, depending on the price and the availability of the biodiesel in the market. Thus, we can conclude that to analyse the intention to use biodiesel, different price and availability scenarios should be taken into account. Empirical results indicated that to increase biodiesel use, the best option is to increase biodiesel knowledge and environmental self-identity.