# Consumer Preferences for Wood-Pellet-Based Green Pricing Programs in the Eastern United States
## 1 Introduction  
In the face of environmental concerns and depleting fossil fuel reserves, renewable energy has become a viable source of clean energy which can be used for the provision of energy security [1]. The United States (US) generates an estimated 24% of its energy from renewable sources, where 1.4% (or 56 billion kilowatt-hours (kWh)) of the total energy is generated from biomass [2]. Biomass is carbon neutral because the carbon dioxide (CO\({}_{2}\)) emitted during combustion is equal to the amount previously absorbed during biomass growth [1]. The pelletization of woody residues (sawdust and wood chips) is one means of bioenergy production [3]. Wood pellets are more efficient than other conventional biomass products; their lower moisture content and greater energy density improve combustion efficiency, make transportation easier and more affordable [4]. The use of wood pellets has gained traction in many European countries; whereas, in the US, the market for wood pellet use is still not well established [5; 6; 7]. Coal generates approximately 19.3% of the US's electricity and is responsible for 1150 million metric tons of the nation's CO\({}_{2}\) emissions, making it one of the largest emitters among all fossil fuels [8]. Coal plants require a large capital investment and have a lifespan of up to 50 years; these factors make the direct replacement of coal plants with renewableenergy infrastructure not fiscally viable [1; 9]. Wood pellet combustion systems, however, are a relatively easy and affordable adaptation to existing coal plants with the potential to greatly reduce emissions per kWh of electricity generated [9]. As energy generation trends continue to shift toward renewable energy sources, utilizing wood pellets for co-firing at coal plants serves as a transitional path to make the energy transition feasible [1]. Cofiring involves the incorporation of biomass into the utility boilers of coal-fired power plants [10; 11]. Co-firing wood pellets with coal offers both economic and environmental benefits as compared to traditional coal-based energy generation [1]. From an economic perspective, co-firing is less capital intensive as it utilizes existing coal-fired power plant infrastructure without further technological adjustments, resulting in savings that favor the biomass supply chain. The environmental benefits of co-firing with wood pellets include a reduction in the emissions of oxides of fossil carbon dioxide (CO\({}_{2}\)), nitrogen (NO\({}_{2}\)), and sulfur (SO\({}_{2}\)), per unit of energy produced [11]. A good example of the of the potential carbon emissions reduction from co-firing is demonstrated in a study by [PERSON] and [PERSON] [12], which established that, for a 5795 MW coal capacity coal plant, co-firing could be reduced to 359 MW with the addition of 15% of wood pellets. Other studies have demonstrated that levels of co-firing between 5% to 15% can reduce CO\({}_{2}\) emissions by 5.4% to 18.2% [11]. Furthermore, co-firing minimizes wood and agricultural wastes, thus eliminating environmental disposal problems associated with additional costs such as landfill tipping fees [1]. A study in Alabama demonstrated that 10% co-firing will require 30-40 tons of wood pellets per hour which can increase the demand for wood and encourage the use of forest residues and other biomass products [13]. The affordability and adaptability of co-firing technology offers a potential means to reduce CO\({}_{2}\) emissions from coal plants [14; 15]. While there is great potential for co-firing wood pellets in coal combustion plants in the US, 73% of domestic wood pellet production was exported to European markets in 2017 [7; 16]. Competitive import prices have resulted in higher costs for domestic wood pellets, making co-firing less commercially viable [9; 17]. Since the wood pellet industry has been largely influenced by export prices, it is not entirely understood how wood pellet consumption in the US would be valued.