Estimating willingness to pay air passenger duty

Neelu Seetaram, Haiyan Song, Shun Ye, Stephen Page

Research output: Contribution to journalArticle

2 Citations (Scopus)

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.
LanguageEnglish
Pages85-97
Number of pages13
JournalAnnals of Tourism Research
Volume72
Early online date14 Jul 2018
DOIs
Publication statusPublished - 1 Sep 2018

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willingness to pay
air
taxation
contingent valuation
demand
carbon
questionnaire survey
elasticity
popularity
taxes
tourist
scenario
questionnaire
modeling
Travellers
Air
Willingness-to-pay
Taxation
Demand curve
Carbon

Cite this

Seetaram, Neelu ; Song, Haiyan ; Ye, Shun ; Page, Stephen . / Estimating willingness to pay air passenger duty. In: Annals of Tourism Research. 2018 ; Vol. 72. pp. 85-97.
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Estimating willingness to pay air passenger duty. / Seetaram, Neelu; Song, Haiyan; Ye, Shun; Page, Stephen .

In: Annals of Tourism Research, Vol. 72, 01.09.2018, p. 85-97.

Research output: Contribution to journalArticle

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