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Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU

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  • Anger, Annela
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    Abstract

    In July 2008, motivated by the expected high growth of aviation and the related impacts on climate change, the European Parliament adopted a directive to include airlines in the European Emissions Trading Scheme. This paper discusses possible impacts of this inclusion on the aviation industry in terms of CO2 emissions and the macroeconomic activity in the EU. The analysis uses the Energy–Environment–Economy Model for Europe, a dynamic simulation model to investigate impacts of the European Emissions Trading Scheme on air transport. The impacts on air transport output and the macroeconomic effects are estimated to be small. This was robust to varying the carbon price. However, air transport CO2 emissions were expected to decrease by up to 7.4%, which is more than that estimated previously and stems mainly from the supply-side reaction of the industry.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Air Transport Management.

    Volume (Year): 16 (2010)
    Issue (Month): 2 ()
    Pages: 100-105

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    Handle: RePEc:eee:jaitra:v:16:y:2010:i:2:p:100-105

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    Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/

    Related research

    Keywords: Air transport; Emissions trading; Climate change; CO2 emissions;

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    References

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    1. Morrell, Peter, 2007. "An evaluation of possible EU air transport emissions trading scheme allocation methods," Energy Policy, Elsevier, vol. 35(11), pages 5562-5570, November.
    2. Ekins, Paul & Barker, Terry, 2001. " Carbon Taxes and Carbon Emissions Trading," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 325-76, July.
    3. Karen Mayor & Richard S.J. Tol, 2007. "The Impact of the UK Aviation Tax on Carbon Dioxide Emissions and Visitor Numbers," Papers WP187, Economic and Social Research Institute (ESRI).
    4. Scheelhaase, Janina D. & Grimme, Wolfgang G., 2007. "Emissions trading for international aviation—an estimation of the economic impact on selected European airlines," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 253-263.
    5. Jonathan Köhler & Ying Jin & Terry Barker, 2008. "Integrated Modelling of EU Transport Policy: Assessing Economic Growth Impacts from Social Marginal Cost Pricing and Infrastructure Investment," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 42(1), pages 1-21, January.
    6. Barker, Terry & Junankar, Sudhir & Pollitt, Hector & Summerton, Philip, 2007. "Carbon leakage from unilateral Environmental Tax Reforms in Europe, 1995-2005," Energy Policy, Elsevier, vol. 35(12), pages 6281-6292, December.
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    Cited by:
    1. Maria Ioncică & Eva-Cristina Petrescu & Diana Ioncică, 2012. "Transports and Consumers’ Ecological Behaviour," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(31), pages 70-83, February.
    2. Winchester, Niven & McConnachie, Dominic & Wollersheim, Christoph & Waitz, Ian A., 2013. "Economic and emissions impacts of renewable fuel goals for aviation in the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 116-128.
    3. Winchester, Niven & McConnachie, Dominic & Wollersheim, Christoph & Waitz, Ian A., 2013. "Economic and Emissions Impacts of Renewable Fuel Goals for Aviation in the US," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 155003, Agricultural and Applied Economics Association.
    4. Alonso, G. & Benito, A. & Lonza, L. & Kousoulidou, M., 2014. "Investigations on the distribution of air transport traffic and CO2 emissions within the European Union," Journal of Air Transport Management, Elsevier, vol. 36(C), pages 85-93.
    5. Chin, Anthony T.H. & Zhang, Peng, 2013. "Carbon emission allocation methods for the aviation sector," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 70-76.
    6. Cristina Barbot & Ofelia Betancor & M. Pilar Socorro & M. Fernanda Viecens, 2012. "Trade-offs between environmental regulation and market competition: airlines, emission trading systems and entry deterrence," Working Papers 2012-05, FEDEA.
    7. Lee, Tsung-Chen & Chang, Young-Tae & Lee, Paul T.W., 2013. "Economy-wide impact analysis of a carbon tax on international container shipping," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 87-102.
    8. Barbot, Cristina & Betancor, Ofelia & Socorro, M. Pilar & Viecens, M. Fernanda, 2014. "Trade-offs between environmental regulation and market competition: Airlines, emission trading systems and entry deterrence," Transport Policy, Elsevier, vol. 33(C), pages 65-72.

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