Paying for carbon: CO₂-based pricing mechanisms and pro-environmental behavior in tourism

Abstract

The climate crisis necessitates transformative approaches in the tourism industry, which has disproportionately high environmental impacts. This study investigated carbon-based dynamic pricing as an example of green capitalism, evaluating its ability to encourage pro-environmental behavioral intentions. Across three experiments, carbon-based dynamic pricing increased pro-environmental behavioral intentions by making guests more sensitive to costs. The results also show that how prices are presented matters. Adding extra charges for higher emissions is more effective than offering discounts, and clearly separating environmental charges on the bill strengthens this effect. These findings offer initial empirical evidence supporting the behavioral validity of green capitalism in tourism, advancing prospect theory by demonstrating how financial mechanisms can align profit motives with ecological outcomes.