IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v26y2017i2p197-208.html
   My bibliography  Save this article

Willingness to Pay for Green Products in Air Travel: Ready for Take‐Off?

Author

Listed:
  • Gieri Hinnen
  • Stefanie Lena Hille
  • Andreas Wittmer

Abstract

We examine the willingness to pay (WTP) for green products in air travel. Green products in aviation are supplementary services, which are sold on top of the travel service (e.g. carbon offsets, organic on‐board food). We identify a set of potential green products in aviation and report the preferences for additional airline services of 811 Swiss air travellers using an adaptive choice‐based conjoint survey. We find that 20% of those passengers who are interested in purchasing supplementary services show a considerable WTP for green products. The green segment differs from the regular segment only in terms of behavioural features, not in terms of demographic or socio‐economic characteristics. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Gieri Hinnen & Stefanie Lena Hille & Andreas Wittmer, 2017. "Willingness to Pay for Green Products in Air Travel: Ready for Take‐Off?," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 197-208, February.
    • Handle: RePEc:bla:bstrat:v:26:y:2017:i:2:p:197-208
    DOI: 10.1002/bse.1909
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.1909
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.1909?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. McLennan, Char-lee J. & Becken, Susanne & Battye, Rod & So, Kevin Kam Fung, 2014. "Voluntary carbon offsetting: Who does it?," Tourism Management, Elsevier, vol. 45(C), pages 194-198.
    2. Wittmer, Andreas & Rowley, Edward, 2014. "Customer value of purchasable supplementary services: The case of a European full network carrier's economy class," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 17-23.
    3. Berman, Barry, 2015. "How to compete effectively against low-cost competitors," Business Horizons, Elsevier, vol. 58(1), pages 87-97.
    4. Ek, Kristina & Söderholm, Patrik, 2008. "Norms and economic motivation in the Swedish green electricity market," Ecological Economics, Elsevier, vol. 68(1-2), pages 169-182, December.
    5. Kaenzig, Josef & Heinzle, Stefanie Lena & Wüstenhagen, Rolf, 2013. "Whatever the customer wants, the customer gets? Exploring the gap between consumer preferences and default electricity products in Germany," Energy Policy, Elsevier, vol. 53(C), pages 311-322.
    6. Ivan Diaz‐Rainey & John K. Ashton, 2011. "Profiling potential green electricity tariff adopters: green consumerism as an environmental policy tool?," Business Strategy and the Environment, Wiley Blackwell, vol. 20(7), pages 456-470, November.
    7. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
    8. Garrett Sonnier & Andrew Ainslie & Thomas Otter, 2007. "Heterogeneity distributions of willingness-to-pay in choice models," Quantitative Marketing and Economics (QME), Springer, vol. 5(3), pages 313-331, September.
    9. Jan Vespermann & Andreas Wittmer, 2011. "Financial, ecological and managerial impacts of emission trading schemes: the case of Lufthansa," Business Strategy and the Environment, Wiley Blackwell, vol. 20(3), pages 174-191, March.
    10. Nina Hampl & Moritz Loock, 2013. "Sustainable Development in Retailing: What is the Impact on Store Choice?," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 202-216, March.
    11. Derek W. Thompson & Roy C. Anderson & Eric N. Hansen & Lynn R. Kahle, 2010. "Green segmentation and environmental certification: insights from forest products," Business Strategy and the Environment, Wiley Blackwell, vol. 19(5), pages 319-334, July.
    12. Tabi, Andrea & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2014. "What makes people seal the green power deal? — Customer segmentation based on choice experiment in Germany," Ecological Economics, Elsevier, vol. 107(C), pages 206-215.
    13. Xavier Font & Richard Tapper & Karen Schwartz & Marianna Kornilaki, 2008. "Sustainable supply chain management in tourism," Business Strategy and the Environment, Wiley Blackwell, vol. 17(4), pages 260-271, May.
    14. Tim Ryley & Jaafar Elmirghani & Tom Budd & Chikage Miyoshi & Keith Mason & Richard Moxon & Imad Ahmed & Bilal Qazi & Alberto Zanni, 2013. "Sustainable Development and Airport Surface Access: The Role of Technological Innovation and Behavioral Change," Sustainability, MDPI, vol. 5(4), pages 1-15, April.
    15. Peter Oberhofer & Elmar Fürst, 2013. "Sustainable Development in the Transport Sector: Influencing Environmental Behaviour and Performance," Business Strategy and the Environment, Wiley Blackwell, vol. 22(6), pages 374-389, September.
    16. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
    17. Julia Blasch & Mehdi Farsi, 2014. "Context effects and heterogeneity in voluntary carbon offsetting - a choice experiment in Switzerland," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(1), pages 1-24, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Belén Payán‐Sánchez & Miguel Pérez‐Valls & José Antonio Plaza‐Úbeda & Diego Vázquez‐Brust, 2022. "Network ambidexterity and environmental performance: Code‐sharing in the airline industry," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1169-1183, March.
    2. Rui Qiu & Shuhua Hou & Xin Chen & Zhiyi Meng, 2021. "Green aviation industry sustainable development towards an integrated support system," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2441-2452, July.
    3. Jing Yu Pan & Dothang Truong, 0. "Low cost carriers in China: passenger segmentation, controllability, and airline selection," Transportation, Springer, vol. 0, pages 1-26.
    4. Ioannis Charalampidis & Alexandros Xanthopoulos & Anastasios Diamantidis & Prodromos Chatzoglou, 2023. "Public Perception of Green Supply Chains and Its Impact on Customer Behavior: An Empirical Analysis," Sustainability, MDPI, vol. 15(23), pages 1-18, November.
    5. Benedikt M. Brand & Theresa Maria Rausch & Jannika Brandel, 2022. "The Importance of Sustainability Aspects When Purchasing Online: Comparing Generation X and Generation Z," Sustainability, MDPI, vol. 14(9), pages 1-28, May.
    6. Stefania Testa & Paolo Roma & Maria Vasi & Silvano Cincotti, 2020. "Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 530-546, February.
    7. Heesup Han & Hossein G.T. Olya & Elena‐Nicoleta Untaru & Ana Ispas & Jinkyung Jenny Kim & Wansoo Kim, 2020. "Impact of airport green atmospherics on mental health value, image, and loyalty among visitors and workers," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1186-1198, March.
    8. Agata Niemczyk & Zofia Gródek-Szostak & Donata Adler & Michał Niewiadomski & Eva Benková, 2023. "Green Entrepreneurship: Knowledge and Perception of Students and Professionals from Poland and Slovakia," Sustainability, MDPI, vol. 16(1), pages 1-24, December.
    9. Hongyi Sun & Pei‐Lee Teh & Jonathan D. Linton, 2018. "Impact of environmental knowledge and product quality on student attitude toward products with recycled/remanufactured content: Implications for environmental education and green manufacturing," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 935-945, November.
    10. Ericka Costa & Dario Montemurro & Diego Giuliani, 2019. "Consumers’ willingness to pay for green cars: a discrete choice analysis in Italy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2425-2442, October.
    11. Emel Yarimoglu & Tugrul Gunay, 2020. "The extended theory of planned behavior in Turkish customers' intentions to visit green hotels," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1097-1108, March.
    12. Jing Yu Pan & Dothang Truong, 2021. "Low cost carriers in China: passenger segmentation, controllability, and airline selection," Transportation, Springer, vol. 48(4), pages 1587-1612, August.
    13. Priessner, Alfons & Hampl, Nina, 2020. "Can product bundling increase the joint adoption of electric vehicles, solar panels and battery storage? Explorative evidence from a choice-based conjoint study in Austria," Ecological Economics, Elsevier, vol. 167(C).
    14. Philip R. Walsh & Rachel Dodds & Julianna Priskin & Jonathon Day & Oxana Belozerova, 2021. "The Corporate Responsibility Paradox: A Multi-National Investigation of Business Traveller Attitudes and Their Sustainable Travel Behaviour," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    15. Nyga, Andreas & Minnich, Aljoscha & Schlüter, Jan, 2020. "The effects of susceptibility, eco-friendliness and dependence on the Consumers’ Willingness to Pay for a door-to-door DRT system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 540-558.
    16. Johan Warburg & Britta Frommeyer & Julia Koch & Sven‐Olaf Gerdt & Gerhard Schewe, 2021. "Voluntary carbon offsetting and consumer choices for environmentally critical products—An experimental study," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3009-3024, November.
    17. Han-Shen Chen & Bi-Kun Tsai & Chi-Ming Hsieh, 2018. "The Effects of Perceived Barriers on Innovation Resistance of Hydrogen-Electric Motorcycles," Sustainability, MDPI, vol. 10(6), pages 1-15, June.
    18. Farheen Naz & Judit Oláh & Dinu Vasile & Róbert Magda, 2020. "Green Purchase Behavior of University Students in Hungary: An Empirical Study," Sustainability, MDPI, vol. 12(23), pages 1-21, December.
    19. José Luis Durán-Román & Pablo Juan Cárdenas-García & Juan Ignacio Pulido-Fernández, 2020. "Tourist Tax to Improve Sustainability and the Experience in Mass Tourism Destinations: The Case of Andalusia (Spain)," Sustainability, MDPI, vol. 13(1), pages 1-20, December.
    20. Seetaram, Neelu & Song, Haiyan & Ye, Shun & Page, Stephen, 2018. "Estimating willingness to pay air passenger duty," Annals of Tourism Research, Elsevier, vol. 72(C), pages 85-97.
    21. Bigerna, Simona & Micheli, Silvia & Polinori, Paolo, 2021. "New generation acceptability towards durability and repairability of products: Circular economy in the era of the 4th industrial revolution," Technological Forecasting and Social Change, Elsevier, vol. 165(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tabi, Andrea & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2014. "What makes people seal the green power deal? — Customer segmentation based on choice experiment in Germany," Ecological Economics, Elsevier, vol. 107(C), pages 206-215.
    2. Andrea Mezger & Pablo Cabanelas & Mª. Jesús López‐Miguens & Francesca Cabiddu & Klaus Rüdiger, 2020. "Sustainable development and consumption: The role of trust for switching towards green energy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3598-3610, December.
    3. Ndebele, Tom, 2020. "Assessing the potential for consumer-driven renewable energy development in deregulated electricity markets dominated by renewables," Energy Policy, Elsevier, vol. 136(C).
    4. Bashiri, Ali & Alizadeh, Sasan H., 2018. "The analysis of demographics, environmental and knowledge factors affecting prospective residential PV system adoption: A study in Tehran," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 3131-3139.
    5. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2021. "The limited potential of regional electricity marketing – Results from two discrete choice experiments in Germany," Energy Economics, Elsevier, vol. 100(C).
    6. Lehmann, Nico & Sloot, Daniel & Ardone, Armin & Fichtner, Wolf, 2022. "Willingness to pay for regional electricity generation – A question of green values and regional product beliefs?," Energy Economics, Elsevier, vol. 110(C).
    7. Lehmann, Nico & Sloot, Daniel & Schüle, Christopher & Ardone, Armin & Fichtner, Wolf, 2023. "The motivational drivers behind consumer preferences for regional electricity – Results of a choice experiment in Southern Germany," Energy Economics, Elsevier, vol. 120(C).
    8. Jana Eßer & Manuel Frondel & Stephan Sommer, 2023. "Soziale Normen und der Emissionsausgleich bei Flügen: Evidenz für deutsche Haushalte [Social Norms and Flight Emission Offsets: Evidence for German Households]," AStA Wirtschafts- und Sozialstatistisches Archiv, Springer;Deutsche Statistische Gesellschaft - German Statistical Society, vol. 17(1), pages 71-99, March.
    9. Moritz Ehrtmann & Lars Holstenkamp & Timon Becker, 2021. "Regional Electricity Models for Community Energy in Germany: The Role of Governance Structures," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    10. Anna Kowalska-Pyzalska, 2019. "Do Consumers Want to Pay for Green Electricity? A Case Study from Poland," Sustainability, MDPI, vol. 11(5), pages 1-20, March.
    11. Hackbarth, André, 2018. "Attitudes, preferences, and intentions of German households concerning participation in peer-to-peer electricity trading," Reutlingen Working Papers on Marketing & Management 2019-2, Reutlingen University, ESB Business School.
    12. Hanimann, Raphael & Vinterbäck, Johan & Mark-Herbert, Cecilia, 2015. "Consumer behavior in renewable electricity: Can branding in accordance with identity signaling increase demand for renewable electricity and strengthen supplier brands?," Energy Policy, Elsevier, vol. 78(C), pages 11-21.
    13. Kalkbrenner, Bernhard J. & Yonezawa, Koichi & Roosen, Jutta, 2017. "Consumer preferences for electricity tariffs: Does proximity matter?," Energy Policy, Elsevier, vol. 107(C), pages 413-424.
    14. Irie, Noriko & Kawahara, Naoko, 2022. "Consumer preferences for local renewable electricity production in Japan: A choice experiment," Renewable Energy, Elsevier, vol. 182(C), pages 1171-1181.
    15. Gerlach, Heiko & Zheng, Xuemei, 2018. "Preferences for green electricity, investment and regulatory incentives," Energy Economics, Elsevier, vol. 69(C), pages 430-441.
    16. Fait, Larissa & Wetzel, Heike & Groh, Elke D., 2020. "Choice Preferences for Regional and Green Electricity: Influence of Regional and Environmental Identity," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224574, Verein für Socialpolitik / German Economic Association.
    17. Sue Hornibrook & Claire May & Andrew Fearne, 2015. "Sustainable Development and the Consumer: Exploring the Role of Carbon Labelling in Retail Supply Chains," Business Strategy and the Environment, Wiley Blackwell, vol. 24(4), pages 266-276, May.
    18. Zade, Michel & Lumpp, Sebastian Dirk & Tzscheutschler, Peter & Wagner, Ulrich, 2022. "Satisfying user preferences in community-based local energy markets — Auction-based clearing approaches," Applied Energy, Elsevier, vol. 306(PA).
    19. Fait, Larissa & Groh, Elke D. & Wetzel, Heike, 2022. "“I take the green one”: The choice of regional green electricity contracts in the light of regional and environmental identity," Energy Policy, Elsevier, vol. 163(C).
    20. Barjak, F. & Lindeque, J. & Koch, J. & Soland, M., 2022. "Segmenting household electricity customers with quantitative and qualitative approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:26:y:2017:i:2:p:197-208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.