Transport and low-carbon fuel: A study of public preferences in Spain

- Road transport is the cause of important energy-related problems, particularly the emission of greenhouse gases and local pollution.
- This paper explores public attitudes and preferences towards low-carbon fuel policies in Spain via contingent valuation.
- A factor analysis is performed, showing the existence of pro-social and economic factors related to preferences for policies.
- Drivers were willing to pay an extra of 115.5 Euros per year for low-carbon fuels, roughly an extra 0.07 (0.08) Euros/liter for gasoline (diesel).
- The results encourage the use of these low-GHG policies as feasible alternatives for climate policies in the transport area.

Transport is essential for the control of future greenhouse gas (GHG) emissions and thus a target for active policy intervention in the future. Yet, social preferences for policies are likely to play an important role. In this paper we first review the existing literature on preferences regarding low-GHG car fuels, but also covering policy instruments and strategies in this area. We then present the results of a survey of Spanish households aimed at measuring preferences for climate change policies. We find a positive willingness to pay (WTP) (in the form of higher car fuel prices) for a policy to reduce GHG emissions through biofuels. There is, however, significant heterogeneity in public preferences due to personal motivations (accounted for via factor analysis of responses to attitudinal questions) and to socio-demographic variables.