Consumer willingness to pay for emission reduction in air travel: A meta-analysis

Abstract

Air travel contributes a substantial share of global greenhouse gas emissions and is projected to rise. To reduce emissions, airlines and policymakers must understand consumer preferences and willingness to pay (WTP) for reductions. Several studies have been conducted for this purpose, with considerable variation in reported WTP values. This paper undertakes a meta-analysis and qualitative review to better understand the key factors influencing WTP drawn from 31 primary studies. A major finding is that WTP could be more than double for a credible offsetting scheme compared to one lacking credibility. Additionally, framing the offset as “per flight” rather than “per tonne CO 2 ” increases WTP, while there appears to be no differential impact of a voluntary versus mandatory schemes. As expected, WTP increases in income, education, and pro-environmental attitudes. The results yield important insights for the design of effective carbon offsetting schemes, thereby enhancing sustainability of aviation.