Article    Peer-Reviewed

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

Tsz Hin Hui , Nadine Itani ,* and John F. O’Connell
Department of Tourism and Transport, University of Surrey, GU2 7XH, Guildford, United Kingdom
These authors contributed equally to this work.
*
For correspondence.
Academic Editor: Laura Eboli
Highlights of Sustainability, 2024, 3(1), 61–75.
Received: 27 December 2023    Accepted: 1 February 2024    Published: 7 February 2024
Abstract
This study aims to investigate air travellers’ Willingness to Pay (WTP) for green premiums, specifically focusing on their contribution to reducing carbon emissions generated by air travel. The research integrates the Theory of Planned Behaviour (TPB) and the Contingent Valuation Method (CVM) to estimate the monetary value that air passengers would be willing to pay for environmental initiatives. The TPB provides a theoretical framework to understand the psychological factors influencing individuals’ intentions and behaviours, while the CVM allows for the estimation of the economic value of environmental goods. Drawing on the TPB, this study examines the influence of attitudes, subjective norms, and perceived behavioural control on air travellers’ WTP for green premiums, while considering the determinants and barriers related to ecological goods, and sustainable consumption. The study investigates the potential economic implications of air travellers’ willingness to pay for green premiums, particularly in the context of sustainable aviation fuel options and carbon-related fees. The findings of the survey of a sample of 248 respondents suggest a general willingness among passengers to pay for environmental premiums, notably carbon taxes, with variations in WTP influenced by demographics, travel preferences, environmental values, and awareness. Notably, younger travellers exhibit the highest WTP which is negatively related to the air ticket price. Higher environmental consciousness correlates with greater WTP. The impact of price perception and perceived efficacy of environmental initiatives were also found significant. Financial constraints and scepticism about the credibility of such premiums, however, limit some passengers’ willingness to contribute.
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Copyright © 2024 Hui et al. This article is distributed under the terms of the Creative Commons Attribution License (CC BY 4.0), which permits unrestricted use and distribution provided that the original work is properly cited.
Funding
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.
Cite this Article
Hui, T., Itani, N., & O’Connell, J. F. (2024). Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes. Highlights of Sustainability, 3(1), 61–75. https://doi.org/10.54175/hsustain3010005
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