These findings could have major ramifications for airline travel and climate-change policies.
People are much more inclined to pay more money for a carbon “offset” than they were for a carbon “tax,” a new study found.
They ran a series of experiments where people were presented with two options for flights, one of which was $14 more expensive. They then tested to see whether people would be willing to choose the costlier flight if the $14 fee was described alternately as a “carbon offset on aviation fuel production and importation” and as a “carbon tax on airplane travel and cargo.”
Beyond the distinction between taxes and offsets, the researchers noted that the focus of the fee likely also played a role in consumers’ preferences. By describing the offset as being used to counter fuel production and imports, it could be “perceived both to help the environment more and to hold accountable those responsible for the emissions,” the researchers said. A tax on airplane travel, meanwhile, could give the people the impression that they were the ones being penalized.
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