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

Research output: Contribution to journalArticle

49 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 languageEnglish (US)
Pages (from-to)468-484
Number of pages17
JournalAgricultural and Resource Economics Review
Volume39
Issue number3
DOIs
StatePublished - Oct 2010

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Keywords

  • Green lodging
  • Hedonic
  • Hotel
  • Internal meta-analysis

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Economics and Econometrics

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