An experimental study to explore WTP for aviation carbon offsets: the impact of a carbon tax on the voluntary action |
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Authors: | Andy S Choi |
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Institution: | UQ Business School, The University of Queensland, Brisbane, QLD 4072, Australia |
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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. |
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Keywords: | voluntary carbon offsets carbon tax contingent valuation air travel willingness to pay |
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