Willingness to Pay of Air Travel Passengers for Carbon Offset Program in Aviation Industry
Recently, a greenhouse gas (GHG) emissions become the raisingissue in the transportation sector. Air transport sector contributes approximately 2% of global greenhouse gas emissions. Reducing greenhouse gas emissions from aircraft is one of the issues taken seriously by the transportation sector. However, air transportation has implemented several ways to reduce carbon emissions, and one of them is by launching carbon offset program. This study estimates the willingness among Malaysian airline passengers to pay for carbon offset program to have a better environmental performance. Using a single and double-bounded dichotomous choice of contingent valuation method (CVM), we estimate how much air passengers would be willing to pay to offset carbon emissions generated by their travel. The results obtained from this study suggest that in average,the Malaysian air passengers are willing to pay RM82.35 for the carbon offset program in aviation industry.
Keywords - Contingent valuation method, Willingness to pay, Carbon offsets, Greenhouse gas emissions, Airline industries