Expoloring the Determinants of AIr Travelers' Willingness to Pay for Sustainable Aviation Fuel

Master Thesis (2023)
Author(s)

Y. Ouaj (TU Delft - Technology, Policy and Management)

Contributor(s)

E.J.E. Molin – Mentor (TU Delft - Transport and Logistics)

G. de Vries – Graduation committee member (TU Delft - Organisation & Governance)

Louis Lammertijn – Graduation committee member (Greenest Airline)

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Publication Year
2023
Language
English
Graduation Date
31-08-2023
Awarding Institution
Programme
Engineering and Policy Analysis
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Abstract

This thesis investigates the factors influencing air travelers’ willingness to pay (WTP) for sustainable aviation fuel (SAF). SAF, produced via processes such as HEFA, FT, SIP, and ATJ, can significantly reduce CO2 emissions compared to conventional jet fuel, but its higher cost challenges adoption. A survey of 276 respondents was conducted, incorporating choice experiments, attitudinal questions, and personal characteristics. Using multinomial logit and latent class choice models (LCCM), three distinct traveler segments were identified: Price-Sensitive, Efficient, and Economic-Environmental Sensitive Travelers. The Economic-Environmental Sensitive segment demonstrates a strong preference for flights with substantial CO2 reductions, willing to pay up to €58.50 for 100% CO2 reduction. Findings highlight consumer heterogeneity in preferences and suggest tailored strategies to promote SAF adoption, including awareness campaigns, targeted incentives, and pricing adjustments.

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