ABSTRACT This study investigates consumer preferences for renewable fuels in Quebec, with a particular focus on a solar fuel produced through artificial photosynthesis. Using a discrete choice experiment (DCE) and both conditional logit (CL) and random parameters logit (RPL) models, we estimate marginal willingness to pay (MWTP) for key fuel attributes, including price, accessibility, environmental performance, and the share of solar fuel in gasoline. The analysis is based on a sample of 627 respondents, yielding 9405 choice observations. The results reveal a strong and statistically significant preference for renewable fuels, with substantial heterogeneity in consumer preferences. The RPL model outperforms the CL specification in terms of fit and behavioral realism, highlighting the importance of accounting for unobserved preference heterogeneity. Price has a consistently negative and highly significant effect on choice probability, while accessibility, environmental performance, and fuel mix are positively valued. MWTP estimates derived from the preferred RPL specification indicate that respondents are willing to pay, on average, 0. 56/L for improvements in fuel mix, 0. 58/L for accessibility, and 0. 59/L for environmental performance. The alternative‐specific constant reflects a strong intrinsic preference for renewable fuels, with an associated MWTP of 1. 62/L, leading to a total MWTP of 3. 37/L. In contrast, the conditional logit model produces lower and less stable welfare estimates, with a total MWTP of 1. 58/L, suggesting that restrictive preference assumptions lead to an underestimation of welfare measures. Robustness checks using a mixed logit model in willingness‐to‐pay space confirm these findings and further support the stability of the estimated preferences. The results show consistent positive valuation of fuel mix and accessibility, as well as strong evidence of preference heterogeneity across individuals. Sociodemographic interactions reveal that women, more educated individuals, and urban residents exhibit stronger preferences for renewable fuels, while highly motorized households display behavioral inertia. These findings underscore the importance of heterogeneity in shaping energy transition preferences. Overall, the results suggest that renewable fuel adoption in Quebec is driven by a combination of economic, environmental, and behavioral factors. The findings provide important insights for designing targeted and socially inclusive policies to support the transition toward low‐carbon transportation systems.
Kpanoga Kolombia (Wed,) studied this question.