Abstract
Climate change poses a generational challenge that requires a sharp reduction in greenhouse gas emissions. We focus on a win-win, low-hanging-fruit source of emissions reductions: long-distance corporate air travel. Compared to a passenger in coach, a traveler in the spacious business cabin contributes three times more emissions. Most business-class passengers are skilled workers who are granted the travel privilege without always valuing it at the marginal price to the employer. We propose that organizations routinely offer these employees the choice to downgrade to coach in exchange for a cash credit equivalent to a share of the airfare difference. The employer could keep some of the savings, employees would enjoy greater choice, and, with airlines adjusting cabin sizes (net of fare responses), the environment would benefit from fewer aircraft carrying more passengers—a “triple-win” scenario. Surveys of managers departing from a major airport indicate the potential for significant gains. Cabin cash-outs would reduce seat misallocation by tens of billions of US dollars and employers’ scope 3 emissions by tens of millions of tons of CO2e each year.