GVA said:
$250 a ton @ 80 % Eff (I went low) =$19.38 per Mil BTU Delivered to home.
$1.84 per therm @ 81% Eff =$22.72 per Mil BTU delivered to home.
Also most pelletheads don't have anyone service the stove.
I would disagree slightly on both points. I doubt that most pellet stoves end up over their entire burn cycles at 80% total efficiency.
And on the second point, anyone who uses a pellet stove regularly needs for it to be serviced, and a LOT of retailers that I know spend all spring and summer (and a lot of the rest of the year) servicing the pellet stoves of their customers. I know it's hard to imagine, but a lot of people are not even comfortable with screwdriver, let alone testing or replacing a control board or vacuum switch.
As fas as where the money goes, that is politics to some degree. As I said, you probably don't know who owns the pellet mills or the forest where they get their fuel source. I think most customer behavior would come down to price point, all things being somewhat equal.....notice I said most, but not all!
If I had a choice between cars, and one was built in Germany and one was built in Japan and one was built here, I would not analyze how much in taxes, wages and social benefits each company paid to their employees, and then think "I'm not going to buy that BMW because I am paying for those workers who get 5 weeks off a year".
In fact, I would probably think just the opposite! If I can get a good value while helping my poor fellow creatures (bums, as you call them), I would not hesitate to do so.
Consumer behavior is complex. As I have often said, electric heaters are the biggest sellers of all - but the most expensive when it comes to fuel. Hot air heat sucks, yet 95% of new houses are being built with it. Square cars do not cut through the wind very well, but some newer models look like the cardboard appliance boxes!
Some trends are obvious, but guessing what the customer is likely to like..... I'll leave that to Steve Jobs.