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.
Highlights
With the increase in global emissions of carbon dioxide, the greenhouse effect is considered to be an increasingly serious problem with significant effects on the human living environment
Through the donation method used in the actual implementation of the carbon-offset policy, this study informed the economy class airline passengers regarding the carbon emissions generated by their trip and investigated the willingness to pay (WTP) model of airline passengers for the carbon-offset based on the amount of money that the respondents were willing to donate for the carbon-offset
This study first used the Spike model to estimate the WTP of economy class airline passengers for the carbon-offset policy to avoid the bias caused by excessive numbers of 0
Summary
With the increase in global emissions of carbon dioxide, the greenhouse effect is considered to be an increasingly serious problem with significant effects on the human living environment. The overall global trend reveals that many European Union member states have adopted a tax policy that raises the ticket price to force airline passengers to pay an additional sum of money to compensate for the carbon emissions generated by air travel This tax covers the external costs, such as air pollution, energy security and climate change caused by GHG emissions and is expected to reduce the load on the environment and help achieve the sustainable growth of the air transport industry. Given the dearth of the utilisation of this approach in the literature, this study used the CV method to assess non-market value to survey the WTP of economy class airline passengers and prepared an econometric model suitable for the price measured in this study It is only a matter of data collection. The study provides references for the air transport industry in promoting the carbon-offset pricing mechanism
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