Assessing the market viability of sustainable aviation fuel: Consumer acceptance and willingness to pay

Despite its significant potential to reduce carbon emissions in the aviation sector, the widespread adoption of sustainable aviation fuel (SAF) is limited by high production costs and uncertain consumer demand. While SAF is recognized as one of the most promising alternatives to conventional fossil-based jet fuel, empirical research on public awareness and willingness to pay (WTP) for SAF remains scarce in Asian countries. Therefore, understanding consumer acceptance and WTP is essential to assess SAF's market feasibility and to design effective demand-side policies. This study conducted a nationwide survey of 559 households using the contingent valuation method (CVM). The results show that consumers are willing to pay an average premium of 10.7 % for SAF-powered flights, indicating substantial public support. These findings contribute to the empirical literature on consumer-driven SAF adoption in Asia and highlight the importance of public preferences in shaping decarbonization strategies in the aviation sector. Based on these results, we propose demand-side policy measures such as green airfare labeling and SAF-related tax incentives to promote SAF uptake. This study also provides key insights into aligning environmental sustainability with economic feasibility in South Korea's aviation sector.