Willingness to Pay of Air Passengers for Carbon-Offset

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 CO2 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 CO2 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 CO2 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.

Designing air ticket taxes for climate change mitigation: insights from a Swedish valuation study

“…The regression analysis revealed that the variables frequentfly, leftpolview, responsible and earmark are all significant predictors of WTP, while from the socio-demographic variables only female is a significant predictor of WTP surcharge and income is a significant predictor of WTP airshort , WTP airlong and WTP aircombined (see Table 2). The latter effect of income on WTP was found in many previous CV studies, also in the context of flying and emissions offsetting (Brouwer et al, 2008;Jou & Chen, 2015;Löschel et al, 2017). The variable female significantly increased the likelihood of being willing to pay (WTP surcharge ), which supports previous evidence for gender differences in environmental behaviour in general (Zelezny, Chua, & Aldrich, 2000) and in WTP for air travel emissions in particular (MacKerron et al, 2009).…”

“…A complication in the design of air ticket taxation is that there is little information about people's willingness to pay (WTP) for such mandatory taxes. In contrast, various studies have investigated air travellers' WTP for voluntary offsets (Brouwer, Brander, & Van Beukering, 2008;Choi & Ritchie, 2014;Jou & Chen, 2015;Lu & Shon, 2012;MacKerron, Egerton, Gaskell, Parpia, & Mourato, 2009). However, this information is not particularly useful for the design of air ticket taxes as there are strong indications that WTP is systematically lower for voluntary offsets than for coercive instruments (Segerstedt & Grote, 2016;Wiser, 2007).…”

Exploring Multiple Motivations on Urban Residents’ Travel Mode Choices: An Empirical Study from Jiangsu Province in China

“…We represent the weight of each factor by using the variance contribution rate of each factor divided by the total variance contribution rate (69.77%) of all six factors. The scores of the six factors were weighted and summed using Equation (6) to calculate the comprehensive value for the pro-environmental motivation (F).…”

“…The transport energy consumption of urban areas is larger than that of rural areas, which is about 10%-15% of the total energy consumption [5]. Due to the rapid growth of the ownership of private cars in cities, traffic congestion not only seriously affects residents' normal lives, but also exacerbates urban air pollution caused by the rapid increase in greenhouse gas emissions [6]. China's CO 2 emissions in the urban transportation…”

Perception of Cabin Air Quality among Drivers and Passengers

“…Sustainable transportation policies are closely related to the potential contribution of this sector in order to decrease in CO 2 emissions [1][2][3]. Air quality and carbon dioxide emissions, especially in urban transportation and air transportation, is one of the major points of interest of researchers [4]. The concern of car manufacturers of air quality inside and outside the vehicle should combine and satisfy both the problematic aspects related to comfort and those related to traffic safety, without neglecting any aspects of reducing energy consumption.…”