Impact of Flight Emissions Information on Consumer Demand: Evidence from the US Airline Industry

This paper estimates how emissions disclosures on flight-booking platforms affect consumers' willingness to pay for flights with lower carbon intensity.

Date

June 11, 2026

Authors

Nafisa Lohawala and Xuan Teng

Publication

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Flight-booking websites, such as Google Flights and Skyscanner, increasingly display estimated CO₂ emissions for flight itineraries, but little is known about whether this information affects booking decisions. We study how emissions disclosure affects consumers' flight choices using US domestic flight data from 2018 to 2022 and a discrete-choice model and find that it increases consumers' sensitivity to flight emissions. In our preferred specification, the absolute value of the emissions elasticity of demand increases from 0.23 in the predisclosure period to 0.28 in the period following the first disclosure. Expressed in willingness-to-pay (WTP) terms, the implied WTP for emissions reductions is $33 per ton higher in the postdisclosure period. Counterfactual simulations suggest that mandating emissions disclosure across all flight-booking platforms would further strengthen consumers' responsiveness to emissions information.

Keywords: Willingness to pay, Carbon emissions disclosure, Discrete-choice model, Aviation

JEL codes: D12, D83, L93, Q58

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