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Environmental costs in European aviation

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  • Schipper, Youdi

Abstract

This paper presents estimates of environmental costs in a set of 36 European airline markets. Cost are calculated for noise, air pollution and accident risk using data on aircraft emissions, exposure-response parameters and economic valuation of environmental goods. The 'medium value' cost estimate is 0.0201ECU per passenger-km. This result suggests that environmental costs represent only a small fraction (2.5%) of the internal cost of aviation as measured by the average ticket price. Noise costs are the dominant environmental cost at some 75% of the cost total. The medium estimates are sensitive to changes in the various assumptions in the pathways: a low and high estimate are three times lower and five times higher, respectively, than the medium estimate. The study further suggests that there are environmental economies of scale in air transport and that Chapter 2 aircraft are about a factor four more environmentally costly than Chapter 3 aircraft.

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Bibliographic Info

Article provided by Elsevier in its journal Transport Policy.

Volume (Year): 11 (2004)
Issue (Month): 2 (April)
Pages: 141-154

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Handle: RePEc:eee:trapol:v:11:y:2004:i:2:p:141-154

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References

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  1. Nordhaus, William D., 1993. "Rolling the 'DICE': an optimal transition path for controlling greenhouse gases," Resource and Energy Economics, Elsevier, vol. 15(1), pages 27-50, March.
  2. Lauraine G. Chestnut & Bart D. Ostro & Nuntavarn Vichit-Vadakan, 1997. "Transferability of Air Pollution Control Health Benefits Estimates from the United States to Developing Countries: Evidence from the Bangkok Study," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1630-1635.
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  8. Button, Kenneth, 1990. "Environmental Externalities and Transport Policy," Oxford Review of Economic Policy, Oxford University Press, vol. 6(2), pages 61-75, Summer.
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Citations

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Cited by:
  1. Morrell, Peter, 2009. "The potential for European aviation CO2 emissions reduction through the use of larger jet aircraft," Journal of Air Transport Management, Elsevier, vol. 15(4), pages 151-157.
  2. Mayor, Karen & Tol, Richard S.J., 2009. "Aviation and the environment in the context of the EU–US Open Skies agreement," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 90-95.
  3. Vespermann, Jan & Wald, Andreas, 2011. "Much Ado about Nothing? – An analysis of economic impacts and ecologic effects of the EU-emission trading scheme in the aviation industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1066-1076.
  4. Thierry Brechet & Pierre M. Picard, 2008. "The Price of Silence: Markets for Noise Licenses and Airports," CREA Discussion Paper Series 08-08, Center for Research in Economic Analysis, University of Luxembourg.
  5. Karen Mayor & Richard S. J. Tol, 2008. "Aviation and the Environment in the Context of the EU-US Open Skies Agreement," Papers WP240, Economic and Social Research Institute (ESRI).
  6. Adler, Nicole & Martini, Gianmaria & Volta, Nicola, 2013. "Measuring the environmental efficiency of the global aviation fleet," Transportation Research Part B: Methodological, Elsevier, vol. 53(C), pages 82-100.
  7. Bert Wee & Piet Rietveld, 2013. "Using value of statistical life for the ex ante evaluation of transport policy options: a discussion based on ethical theory," Transportation, Springer, vol. 40(2), pages 295-314, February.
  8. Chester, Mikhail & Horvath, Arpad, 2008. "Environmental Life-cycle Assessment of Passenger Transportation: A Detailed Methodology for Energy, Greenhouse Gas and Criteria Pollutant Inventories of Automobiles, Buses, Light Rail, Heavy Rail and ," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt5670921q, Institute of Transportation Studies, UC Berkeley.

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