Is carbon footprint reduction always preferred over offsetting? An analysis of tourists' preferences in the Mallorca region

Llorenç B. Femenias Rosselló, Angel Bujosa Bestard and Antoni Riera Font

Economic Analysis and Policy, 2024, vol. 81, issue C, 1371-1381

Abstract: This research is devoted to the analysis of tourists’ preferences for climate change (CC) mitigation policies in the Mallorca region. The stated choice experiment, used for evaluation, was designed combining a set of alternatives, characterised by carbon footprint reduction and offset policies, taking into account the existence of environmental direct benefits, but also indirect benefits that improve tourist experience or co-benefits derived from the location of policy projects. Economic welfare in form of willingness to pay (WTP) was estimated, and the alternatives were compared using compensating variation values. The study's findings validate the prevailing preference for carbon reduction policies over offsetting measures, except when the first don't have co-benefits and the latter are implemented locally. In the latter case, there is no significant difference in WTP between reducing the carbon footprint and locally offsetting it. Results not only contributes to the ongoing economic debate surrounding CC mitigation policies but also provides key information for designing mitigation schemes in diffuse emission sectors such as tourism.

Keywords: Choice experiment; Willingness to pay; Climate change mitigation; Reduction; Offsetting; Sun-and-beach tourism (search for similar items in EconPapers)
JEL-codes: Q51 Q54 Z38 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:81:y:2024:i:c:p:1371-1381

DOI: 10.1016/j.eap.2024.02.018

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