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Willingness to Pay of Air Passengers for Carbon-Offset

Author

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  • Rong-Chang Jou

    (Department of Civil Engineering, National Chi Nan University, No.1, University Rd., Puli, Nantou 54561, Taiwan)

  • Tzu-Ying Chen

    (Department of Civil Engineering, National Chi Nan University, No.1, University Rd., Puli, Nantou 54561, Taiwan)

Abstract

An important source of anthropogenic greenhouse gas (GHG) emissions is the air transport sector, which accounts for approximately 2% of global GHG emissions. Therefore, reducing GHG emissions from aircrafts has become a major challenge for transportation authorities worldwide. In recent years, much research has focused on tax ideas related to the CO 2 emissions produced by air transport, such as the voluntary carbon offset (VCO). This study investigates the willingness of economy class air passengers to pay to compensate for the CO 2 emissions produced during their journeys from Taiwan to Hong Kong. Together with the Spike model, a framework known as the contingent valuation (CV) method offers a way to investigate how much the air passenger would be willing to pay to offset a journey’s airplane-generated CO 2 emissions. The Spike model was applied to address the problem of zero willingness to pay (WTP). The results obtained in this study are consistent with the results found in previous studies and therefore can provide valuable insights into pricing strategies for airlines.

Suggested Citation

  • Rong-Chang Jou & Tzu-Ying Chen, 2015. "Willingness to Pay of Air Passengers for Carbon-Offset," Sustainability, MDPI, vol. 7(3), pages 1-15, March.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:3:p:3071-3085:d:46798
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    Cited by:

    1. Rosa Maria Arnaldo Valdés & Victor Fernando Gomez Comendador & Luis Manuel Braga Campos, 2021. "How Much Can Carbon Taxes Contribute to Aviation Decarbonization by 2050," Sustainability, MDPI, vol. 13(3), pages 1-13, January.
    2. Rotaris, Lucia & Giansoldati, Marco & Scorrano, Mariangela, 2020. "Are air travellers willing to pay for reducing or offsetting carbon emissions? Evidence from Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 71-84.
    3. Peter Korba & Ingrid Sekelová & Martina Koščáková & Annamária Behúnová, 2023. "Passengers’ Knowledge and Attitudes toward Green Initiatives in Aviation," Sustainability, MDPI, vol. 15(7), pages 1-25, April.
    4. Bernard, René & Tzamourani, Panagiota & Weber, Michael, 2022. "Climate change and individual behavior," Discussion Papers 01/2022, Deutsche Bundesbank.
    5. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2023. "Firm value in the airline industry: perspectives on the impact of sustainability and Covid-19," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-24, December.
    6. Doru Constantin & Crisanta-Alina Mazilescu & Mihai Nagi & Anca Draghici & Ana-Andreea Mihartescu, 2016. "Perception of Cabin Air Quality among Drivers and Passengers," Sustainability, MDPI, vol. 8(9), pages 1-14, August.
    7. Jichao Geng & Ruyin Long & Hong Chen & Ting Yue & Wenbo Li & Qianwen Li, 2017. "Exploring Multiple Motivations on Urban Residents’ Travel Mode Choices: An Empirical Study from Jiangsu Province in China," Sustainability, MDPI, vol. 9(1), pages 1-16, January.
    8. Roberto Rendeiro Martín-Cejas, 2022. "The Influence of the Resident Subsidy on Regional Carrier Economies and the Environment in the Canary Interisland Air Traffic Network," Tourism and Hospitality, MDPI, vol. 3(3), pages 1-15, June.
    9. Ie Zheng Goh & Nitanan Koshy Matthew, 2021. "Residents’ Willingness to Pay for a Carbon Tax," Sustainability, MDPI, vol. 13(18), pages 1-25, September.
    10. 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.
    11. Regina Frei & Lisa Jack & Sally‐Ann Krzyzaniak, 2020. "Sustainable reverse supply chains and circular economy in multichannel retail returns," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1925-1940, July.
    12. Jou, Rong-Chang & Kuo, Chung-Wei & Chiu, Yi-Chun, 2022. "Bidding behaviors for international airline seats in short/long distance flights," Transportation Research Part A: Policy and Practice, Elsevier, vol. 163(C), pages 55-79.
    13. Amenta, Nina & Sanguinetti, Angela, 2020. "Adding Carbon to the Equation in Online Flight Search," Institute of Transportation Studies, Working Paper Series qt5n53672m, Institute of Transportation Studies, UC Davis.
    14. 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.

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