An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action

Andy Choi ()

Journal of Environmental Planning and Management, 2015, vol. 58, issue 9, 1617-1634

Abstract: As Australia recently introduced a mandatory carbon price, this paper provides a rare perspective of how such institutional changes influence consumer preferences for voluntary climate action. When examined using three contingent valuation questions, the results show that the compliance mechanism induces a substantial reduction in the number of air travellers who are willing to pay extra for voluntary carbon offsets and in the payment amount, although the crowding-out effect is incomplete. A disproportionately larger welfare benefit is attached to the carbon offsets for a domestic flight than its international counterpart. Overall empirical findings advocate the continued role of voluntary programmes.

Date: 2015
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Citations: View citations in EconPapers (7)

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DOI: 10.1080/09640568.2014.940515

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