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Sustainability 2015, 7(3), 3071-3085; doi:10.3390/su7033071

Willingness to Pay of Air Passengers for Carbon-Offset

Department of Civil Engineering, National Chi Nan University, No.1, University Rd., Puli, Nantou 54561, Taiwan
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Author to whom correspondence should be addressed.
Academic Editor: Giuseppe Ioppolo
Received: 29 October 2014 / Revised: 6 March 2015 / Accepted: 9 March 2015 / Published: 13 March 2015
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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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. View Full-Text
Keywords: air transport CO2 emissions; voluntary carbon offset; Spike model air transport CO2 emissions; voluntary carbon offset; Spike model
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Jou, R.-C.; Chen, T.-Y. Willingness to Pay of Air Passengers for Carbon-Offset. Sustainability 2015, 7, 3071-3085.

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