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Estimating willingness to pay air passenger duty

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  • Seetaram, Neelu
  • Song, Haiyan
  • Ye, Shun
  • Page, Stephen

Abstract

Carbon taxation on air travellers is widely considered an effective way of offsetting environmental externalities and adjusting tourist flows. Despite the popularity of carbon taxation, research investigating travellers’ willingness to pay (WTP) such taxes remains scant. Using the air passenger duty (APD) levied by the UK government, this study estimates UK outbound travellers’ WTP and further derives the demand curves under six trip scenarios. The contingent valuation method is used to elicit the travellers’ WTP based on an online questionnaire survey. Comparative analysis and hierarchical linear modelling reveal that first, travellers are willing to pay more APD for business class and long-haul trips, and second, all of the demand curves are downward sloping with increasing elasticities.

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  • Seetaram, Neelu & Song, Haiyan & Ye, Shun & Page, Stephen, 2018. "Estimating willingness to pay air passenger duty," Annals of Tourism Research, Elsevier, vol. 72(C), pages 85-97.
    • Handle: RePEc:eee:anture:v:72:y:2018:i:c:p:85-97
    DOI: 10.1016/j.annals.2018.07.001
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    3. Chang-Young Jeon & Hee-Won Yang, 2021. "The Impact of the COVID-19 Pandemic on Tourists’ WTP: Using the Contingent Valuation Method," IJERPH, MDPI, vol. 18(16), pages 1-14, August.
    4. de Bruin, Kelly & Yakut, Aykut Mert, 2021. "The impacts of aviation taxation in Ireland," Research Series, Economic and Social Research Institute (ESRI), number RS131.
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    6. Qiying Ding & Shoufu Lin & Shanyong Wang, 2022. "Determinants and Willingness to Pay for Purchasing Mask against COVID-19: A Protection Motivation Theory Perspective," IJERPH, MDPI, vol. 19(7), pages 1-15, April.
    7. Qiu, Richard T.R. & Park, Jinah & Li, ShiNa & Song, Haiyan, 2020. "Social costs of tourism during the COVID-19 pandemic," Annals of Tourism Research, Elsevier, vol. 84(C).
    8. Chen, Tiantian & Fu, Xiaowen & Hensher, David A. & Li, Zhi-Chun & Sze, N.N., 2022. "The effect of online meeting and health screening on business travel: A stated preference case study in Hong Kong," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    9. Lu Zhang & Deqing Ma & Jinsong Hu, 2021. "Research on the Sustainable Operation of Low-Carbon Tourism Supply Chain under Sudden Crisis Prediction," Sustainability, MDPI, vol. 13(15), pages 1-25, July.
    10. Wang, Xuhui & Xi, Haonan, 2023. "Carbon mitigation policy and international tourism. Does the European Union Emissions Trading System hit international tourism from member states?," Annals of Tourism Research, Elsevier, vol. 103(C).
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    12. Nenem, Sukru & Graham, Anne & Dennis, Nigel, 2020. "Airline schedule and network competitiveness: A consumer-centric approach for business travel," Annals of Tourism Research, Elsevier, vol. 80(C).
    13. Carroll, James & Brazil, William & Howard, Michael & Denny, Eleanor, 2022. "Imperfect emissions information during flight choices and the role of CO2 labelling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    14. José Luis Durán-Román & Pablo Juan Cárdenas-García & Juan Ignacio Pulido-Fernández, 2020. "Tourist Tax to Improve Sustainability and the Experience in Mass Tourism Destinations: The Case of Andalusia (Spain)," Sustainability, MDPI, vol. 13(1), pages 1-20, December.
    15. Becken, Susanne & Carmignani, Fabrizio, 2020. "Are the current expectations for growing air travel demand realistic?," Annals of Tourism Research, Elsevier, vol. 80(C).
    16. Mello, Fabiana Peixoto de, 2024. "Voluntary carbon offset programs in aviation: A systematic literature review," Transport Policy, Elsevier, vol. 147(C), pages 158-168.

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