University of Hertfordshire

From the same journal

By the same authors

Estimating Willingness to Pay Air Passenger Duty

Research output: Contribution to journalArticle

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Original languageEnglish
Number of pages13
Pages (from-to)85-97
JournalAnnals of Tourism Research
Journal publication date1 Sep 2018
Volume72
Early online date14 Jul 2018
DOIs
StatePublished - 1 Sep 2018

Abstract

Carbon taxation on air travellers is widely considered an effective way of offsetting environmental externalities and adjusting tourist flow. 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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