Social benefits of biodiesel fuel production in Hokkaido using waste cooking oil and policy implications
2015
Irie, N. | Takahashi, T. | Nakajima, T. | Kawahara, N. | Suzuki, N.
There is a significant entry barrier to biodiesel fuel (BDF) production for small BDF plants as it is generally difficult for such plants to be economically viable. Social support policy for small BDF production may have to be considered if total social benefits outweigh social costs. This paper studies an actual BDF factory in Hokkaido as a model to estimate the net total social benefits considering the total marginal willingness to pay (WTP) and the net private benefits of BDF production using waste cooling oil (WCO and WCO-BDF). The net social benefits of the dissemination of the WCO-BDF system was 4.0-9.9 trillion JPY (0.4-0.5 trillion JPY per factory) when the figure of WTP for all sample averages was employed. It was clarified that the WTP amount was large enough to financially support the operation of the model BDF factory.
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