Air Passengers’ Preferences for Aviation Voluntary Carbon Offsetting: A Co-benefits Perspective

Abstract

Co-benefits are positive outcomes from voluntary carbon offsetting (VCO) programs beyond simple reduction in carbon emissions, which include biodiversity, air quality, economic, health, and educational benefits. Given the rates of aviation VCOs remain at less than 10%, this study investigated air passengers’ preferences for co-benefits as well as certification, location, and cost of VCO programs. Using discrete choice modeling, this study shows that aviation VCO programs with higher levels of co-benefits, particularly biodiversity and health benefits, are preferred by air passengers and confirms a preference for domestically based and certified VCO programs. The latent class choice model identified three classes with different preferences for VCO program attributes and demographic characteristics. The results of this study contribute to the knowledge of VCO co-benefits and imply that airlines should take note of this preference for biodiversity and health co-benefits when designing VCO programs and differentiate between market segments to increase the uptake of VCOs.