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How Information on Emissions per Euro Spent can Influence Leisure Travel Decisions

Author

Listed:
  • Thomas Hagedorn

    (Institute of Transport Economics, Muenster)

  • Jan Wessel

    (Institute of Transport Economics, Muenster)

Abstract

Based on a discrete choice experiment with 306 individuals from Germany, we examine the impact of the emissions-per-Euro-spent indicator (g/€ indicator) on people's travel behavior. This indicator, which was motivated by Hagedorn and Sieg (2019), makes cheap, but emission-intensive travel alternatives appear particularly harmful for the environment. We find that the g/€ indicator induces people to be more likely to choose the travel alternative with the lower indicator value. This effect persists even if participants are informed about general CO2 emissions. We also find that the steering effect of the g/€ indicator is stronger than for other emission indicators, especially for the costs of offsetting emissions. Our results thereby indicate that the g/€ indicator could be used as an effective steering instrument for people to rethink traveling with cheap, but emission-intensive means of transport, especially with ultra-low cost carriers.

Suggested Citation

  • Thomas Hagedorn & Jan Wessel, 2022. "How Information on Emissions per Euro Spent can Influence Leisure Travel Decisions," Working Papers 35, Institute of Transport Economics, University of Muenster.
    • Handle: RePEc:mut:wpaper:35
    as

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    File URL: http://www.wiwi.uni-muenster.de/ivm/sites/ivm/files/documents/forschung/diskussionspapiere/ivm_workingpaper_35.pdf
    File Function: First version, 2022
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    References listed on IDEAS

    as
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    3. Manfred Lenzen & Ya-Yen Sun & Futu Faturay & Yuan-Peng Ting & Arne Geschke & Arunima Malik, 2018. "The carbon footprint of global tourism," Nature Climate Change, Nature, vol. 8(6), pages 522-528, June.
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    5. M. Pandelaere & B. Briers, 2011. "How to Make a 29% Increase Look Bigger: Numerosity Effects in Option Comparisons," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/712, Ghent University, Faculty of Economics and Business Administration.
    6. Schwirplies, Claudia & Dütschke, Elisabeth & Schleich, Joachim & Ziegler, Andreas, 2019. "The willingness to offset CO2 emissions from traveling: Findings from discrete choice experiments with different framings," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    7. Thomas Hagedorn & Gernot Sieg, 2019. "Emissions and External Environmental Costs from the Perspective of Differing Travel Purposes," Sustainability, MDPI, vol. 11(24), pages 1-22, December.
    8. Cadario, Romain & Parguel, Béatrice & Benoit-Moreau, Florence, 2016. "Is bigger always better? The unit effect in carbon emissions information," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 204-207.
    9. Sanguinetti, Angela & Amenta, Nina, 2021. "Nudging consumers toward greener air travel by adding carbon to the equation in online flight search," Institute of Transportation Studies, Working Paper Series qt70d421zg, Institute of Transportation Studies, UC Davis.
    10. Mario Pandelaere & Barbara Briers & Christophe Lembregts, 2011. "How to Make a 29% Increase Look Bigger: The Unit Effect in Option Comparisons," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 38(2), pages 308-322.
    11. Manfred Lenzen & Ya-Yen Sun & Futu Faturay & Yuan-Peng Ting & Arne Geschke & Arunima Malik, 2018. "Author Correction: The carbon footprint of global tourism," Nature Climate Change, Nature, vol. 8(6), pages 544-544, June.
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    Cited by:

    1. Gernot Sieg, 2023. "The economic cost of a 130 kph speed limit in Germany: Comment," Working Papers 38, Institute of Transport Economics, University of Muenster.
    2. Christina Brand & Thomas Hagedorn & Till Kösters & Marlena Meier & Gernot Sieg & Jan Wessel, 2023. "Riding the Green Wave – How Countdown Timers at Bicycle Traffic Lights Impact on Cycling Behavior," Working Papers 37, Institute of Transport Economics, University of Muenster.

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    More about this item

    Keywords

    Environmental metrics; g/€ indicator; discrete choice experiment; travel decisions; carbon dioxide emissions;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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