Air travellers' attitudes towards carbon emissions: evidence from the Google Flights interface

Reducing carbon dioxide emissions in the aviation industry is a formidable challenge. Understanding airline travellers’ willingness to pay for emission reductions could lead to impactful changes in flight pricing and government policies. In this study, we employ a discrete choice experiment to more accurately gauge this willingness to pay. The experiment features a comprehensive analysis of both leisure and business traveller categories, utilising a realistic interface mirroring Google Flights for journeys between Los Angeles and New York. The findings demonstrate that, on average, business flyers exhibit a significantly higher willingness to pay for emission reductions compared to leisure flyers. Notably, a subset of emissions conscious leisure flyers also exhibits a markedly higher willingness to pay. Latent class modelling indicates that this emissions conscious group accounts for about 42% of the leisure flyer sample. The larger group of price focused leisure flyers does not display any significant willingness to pay for emission reduction. Another key finding is that ethical consumption behaviour, not just stronger perceptions related to climate change, is linked to emissions-reducing preferences among both types of flyers. These results provide valuable insights for policy and pricing strategies, emphasising the heterogeneity across and within the business and leisure flyer segments.