Are Chinese willing to pay for travel carbon offset products?

Abstract

This study explored tourists’ preferences and willingness to pay for travel carbon offset (TCO) products using a hybrid choice model (HCM). This model integrates a mixed multinomial logit model (MMNL) and a latent variable model (LVM) to facilitate the exploration of preference heterogeneity among tourists by incorporating individual psychological constructs. The key empirical results were as follows: (1) the respondents were more likely to purchase a TCO product when they were provided with both TCO and opt-out options; the respondents were willing to pay ¥108 (about US$15.88) for an optimal TCO product for 1-tonne travel carbon emissions; (2) tourists’ preferences for TCO products were influenced by offset- and travel-related factors, including offset quantity, project locations and types, TCO providers and payment time; and (3) green trust and socio-demographic characteristics influenced the respondents’ preferences for TCO products. Through this study, we extend the literature on global warming mitigation, pro-environmental behaviour and discrete choice modelling. Our empirical results can be used by tourism businesses to understand tourists’ demands for TCO products and to provide specific recommendations for developing decarbonisation products.