Swedish companies' willingness to pay a price premium for flights using bio jet fuel
An important source of carbon dioxide emissions is the aviation industry, which accounts approximately for 2 percent globally. Therefore, reducing these emissions has become a major challenge for air travel authorities worldwide. One solution to the problem is the deployment of bio jet fuel, which i...
| Autor principal: | |
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| Formato: | Second cycle, A2E |
| Lenguaje: | sueco Inglés |
| Publicado: |
2016
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| Acceso en línea: | https://stud.epsilon.slu.se/9626/ |
| _version_ | 1855571554351448064 |
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| author | Goding, Louise |
| author_browse | Goding, Louise |
| author_facet | Goding, Louise |
| author_sort | Goding, Louise |
| collection | Epsilon Archive for Student Projects |
| description | An important source of carbon dioxide emissions is the aviation industry, which accounts approximately for 2 percent globally. Therefore, reducing these emissions has become a major challenge for air travel authorities worldwide. One solution to the problem is the deployment of bio jet fuel, which is a green alternative to the traditional jet fuel and can result in an 80 percent reduction in carbon dioxide emissions. The production of bio jet fuel, however, is to date more expensive relative to the production of traditional jet fuel and leads, as a result, to a higher price of flight tickets. Consequently, this study investigates Swedish companies’ willingness to pay for flying with 50 percent bio jet fuel by employing the contingent valuation method. The results obtained show that the average price premium is 11.5 percent, and that significant differences in the level of willingness to pay are found for different flight destinations; a result that provides valuable insights into pricing strategies for airlines operating on these destinations. The fact that companies employ certain booking policies have as well significant impacts on the estimated willingness to pay. Overall, the results of this study will increase airlines’ awareness about the economic possibilities for them to begin the process of implementing the green alternative. |
| format | Second cycle, A2E |
| id | RepoSLU9626 |
| institution | Swedish University of Agricultural Sciences |
| language | Swedish Inglés |
| publishDate | 2016 |
| publishDateSort | 2016 |
| record_format | eprints |
| spelling | RepoSLU96262016-10-03T13:10:59Z https://stud.epsilon.slu.se/9626/ Swedish companies' willingness to pay a price premium for flights using bio jet fuel Goding, Louise Economics and management An important source of carbon dioxide emissions is the aviation industry, which accounts approximately for 2 percent globally. Therefore, reducing these emissions has become a major challenge for air travel authorities worldwide. One solution to the problem is the deployment of bio jet fuel, which is a green alternative to the traditional jet fuel and can result in an 80 percent reduction in carbon dioxide emissions. The production of bio jet fuel, however, is to date more expensive relative to the production of traditional jet fuel and leads, as a result, to a higher price of flight tickets. Consequently, this study investigates Swedish companies’ willingness to pay for flying with 50 percent bio jet fuel by employing the contingent valuation method. The results obtained show that the average price premium is 11.5 percent, and that significant differences in the level of willingness to pay are found for different flight destinations; a result that provides valuable insights into pricing strategies for airlines operating on these destinations. The fact that companies employ certain booking policies have as well significant impacts on the estimated willingness to pay. Overall, the results of this study will increase airlines’ awareness about the economic possibilities for them to begin the process of implementing the green alternative. 2016-09-19 Second cycle, A2E NonPeerReviewed application/pdf sv https://stud.epsilon.slu.se/9626/1/Goding_L_160915.pdf Goding, Louise, 2016. Swedish companies' willingness to pay a price premium for flights using bio jet fuel : a survey based on companies flying via Bromma Stockholm Airport. Second cycle, A2E. Uppsala: (NL, NJ) > Dept. of Economics <https://stud.epsilon.slu.se/view/divisions/OID-510.html> urn:nbn:se:slu:epsilon-s-5909 eng |
| spellingShingle | Economics and management Goding, Louise Swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| title | Swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| title_full | Swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| title_fullStr | Swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| title_full_unstemmed | Swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| title_short | Swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| title_sort | swedish companies' willingness to pay a price premium for flights using bio jet fuel |
| topic | Economics and management |
| url | https://stud.epsilon.slu.se/9626/ https://stud.epsilon.slu.se/9626/ |