Exploring airline passengers’ willingness to pay for carbon offsets

This study examines airline passengers’ willingness to pay for carbon-offsets. Using the contingent valuation method of double-bounded dichotomous choice format and a survey of over 1000 Taiwanese passengers flying to countries in Asia, Europe, North America, and Oceania to gauge their willingness-to-pay for airline carbon-offsets. The results suggest that despite the trip characteristics and personal background, air travel passengers’ knowledge and perceptions of the carbon-offset scheme also greatly influence the stated willingness to pay.

► Airline passengers’ willingness to pay for carbon offsets is investigated.
► Contingent valuation method is used to elicit the WTP from Taiwanese passengers.
► Interval regression model is fitted and factors influencing the amount of WTP are determined.
► Passengers’ awareness of emissions and knowledge about offset scheme have significant effects.