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Institute of Transportation, MOTC

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Transportation Dissertation

Title Air Passengers’ Exchange Preference and Willingness to Pay for Carbon Offset Schemes —The Case Study on Airline Service
Year 2022
Degree Master
School Department of Transportation and Logistics Management National Yang Ming Chiao Tung University
Author Shien, Wen-Chien
Summary

      CO2 and greenhouse gas emissions are rising year by year. While the transportation industry accounts for 20% of the total. Among them, the aviation industry accounts for 12%. In order to solve this problem and achieve the goal of net-zero carbon emissions, international organizations and airlines have proposed carbon offset schemes, which passengers can achieve carbon neutral for the flight through voluntary carbon offsets. However, most of the research focuses on the willingness to pay for carbon offset, but does not discuss other services as exchange items. Therefore, this study designed preference questionnaire to analyze passengers' preference and estimated Multinomial and Latent Class logit model to analyze the heterogeneity of passengers and calculate willingness to pay. In addition, we estimated Contingent valuation method to compare the price by three model’s result. The results of multinomial logit model show that there are significant differences in travelers' attention to each attribute. In latent class logit model, one of the two groups comprises passengers with income and whether they are environmentally friendly. For passengers in class1, variables of carbon offset are significant differences, however, others are sensitive to price. The results of tri-bounded dichotomous choice model are when the number of travelers increases, the willingness to pay of passengers will decrease. As passengers with business trips or aged 25-64 or with a master’s degree, and when the income increases by 1%, the willingness to pay for carbon offset will increase. Finally, comparing the willingness to pay for carbon offset estimated by the three models with
the price of aviation and international carbon trade. The estimated price is between the  international carbon trade and higher than the aviation. In order to provide suggestions for airlines to draw up carbon offset plans in the future, this study uses the laten logit model results to calculate the exchange relationship between in-flight meals, luggage weight and entertainment equipment provided by current air tickets and the weight of carbon offset.

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