Are travelers willing to pay a premium to stay at a "green" hotel? Evidence from an internal meta-analysis of hedonic price premia

Nicolai Kuminoff; Congwen Zhang; Jeta Rudi

doi:10.1017/S1068280500007450

Are travelers willing to pay a premium to stay at a "green" hotel? Evidence from an internal meta-analysis of hedonic price premia

Nicolai Kuminoff, Congwen Zhang, Jeta Rudi

Economics

Research output: Contribution to journal › Article › peer-review

81 Scopus citations

Abstract

A growing number of hotels provide "green" lodging for travelers with strong environmental preferences. Twelve states have developed certification programs to regulate these claims. After describing the new market for green lodging, we use data on prices and amenities of "green" and "brown" hotels in Virginia to estimate a hedonic model of hotel room pricing. We find that travelers can expect to pay a significant premium for a standard room in a green hotel. An internal meta-analysis is used to evaluate the robustness of this result to subjective econometric modeling decisions. Our results indicate a premium between $9 and $26.

Original language	English (US)
Pages (from-to)	468-484
Number of pages	17
Journal	Agricultural and Resource Economics Review
Volume	39
Issue number	3
DOIs	https://doi.org/10.1017/S1068280500007450
State	Published - Oct 2010

Keywords

Green lodging
Hedonic
Hotel
Internal meta-analysis

ASJC Scopus subject areas

Agronomy and Crop Science
Economics and Econometrics

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AB - A growing number of hotels provide "green" lodging for travelers with strong environmental preferences. Twelve states have developed certification programs to regulate these claims. After describing the new market for green lodging, we use data on prices and amenities of "green" and "brown" hotels in Virginia to estimate a hedonic model of hotel room pricing. We find that travelers can expect to pay a significant premium for a standard room in a green hotel. An internal meta-analysis is used to evaluate the robustness of this result to subjective econometric modeling decisions. Our results indicate a premium between $9 and $26.

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Are travelers willing to pay a premium to stay at a "green" hotel? Evidence from an internal meta-analysis of hedonic price premia

Abstract

Keywords

ASJC Scopus subject areas

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