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An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action

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  • Andy S. Choi

Abstract

As Australia recently introduced a mandatory carbon price, this paper provides a rare perspective of how such institutional changes influence consumer preferences for voluntary climate action. When examined using three contingent valuation questions, the results show that the compliance mechanism induces a substantial reduction in the number of air travellers who are willing to pay extra for voluntary carbon offsets and in the payment amount, although the crowding-out effect is incomplete. A disproportionately larger welfare benefit is attached to the carbon offsets for a domestic flight than its international counterpart. Overall empirical findings advocate the continued role of voluntary programmes.

Suggested Citation

  • Andy S. Choi, 2015. "An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 58(9), pages 1617-1634, September.
    • Handle: RePEc:taf:jenpmg:v:58:y:2015:i:9:p:1617-1634
    DOI: 10.1080/09640568.2014.940515
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    Cited by:

    1. Eßer, Jana & Frondel, Manuel & Sommer, Stephan, 2021. "Soziale Normen und der Emissionsausgleich bei Flügen: Evidenz für deutsche Haushalte," RWI Materialien 139, RWI - Leibniz-Institut für Wirtschaftsforschung.
    2. Becken, Susanne & Mackey, Brendan, 2017. "What role for offsetting aviation greenhouse gas emissions in a deep-cut carbon world?," Journal of Air Transport Management, Elsevier, vol. 63(C), pages 71-83.
    3. 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.
    4. 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.
    5. Andy S. Choi & Kelly S. Fielding, 2016. "Cultural Attitudes as WTP Determinants: A Revised Cultural Worldview Scale," Sustainability, MDPI, vol. 8(6), pages 1-18, June.

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