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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

Published online by Cambridge University Press:  15 September 2016

Nicolai V. Kuminoff ,
Congwen Zhang  and
Jeta Rudi
Nicolai V. Kuminoff
Affiliation:
Department of Economics at Arizona State University in Tempe, Arizona
Congwen Zhang
Affiliation:
Department of Applied Economics at Virginia Tech in Blacksburg, Virginia
Jeta Rudi
Affiliation:
Department of Economics at Berea College in Berea, Kentucky
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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.

Keywords

green lodginghedonichotelinternal meta-analysis
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 39 , Issue 3 , October 2010 , pp. 468 - 484
Copyright
Copyright © 2010 Northeastern Agricultural and Resource Economics Association 

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