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Incentive-based environmental regulation of domestic civil aviation in Sweden

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  • Carlsson, F.

Abstract

In this paper we analyse the possibility of an incentive-based (IB) environmental regulation of domestic civil aviation in Sweden. From a regulation perspective, we identify important characteristics of domestic aviation. We discuss several, both practical and theoretical, critical aspects on IB regulation. In the short-run, the environmental performance of an IB regulation might be poor, since the most likely source of emission reductions is a reduction in the number of flights. However, we also find that the dynamic effects of an IB regulation are clearly better than for command-and-control regulations. Given this discussion, we investigate the prospects of implementing an optimal IB regulation and compare this with the present regulation and pricing of the infrastructure. We show that introducing an IB regulation could improve the over-all efficiency of the pricing system.

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Bibliographic Info

Article provided by Elsevier in its journal Transport Policy.

Volume (Year): 6 (1999)
Issue (Month): 2 (April)
Pages: 75-82

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Handle: RePEc:eee:trapol:v:6:y:1999:i:2:p:75-82

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  1. repec:dgr:uvatin:2097084 is not listed on IDEAS
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  3. Fredrik Carlsson, 2000. "Environmental Taxation and Strategic Commitment in Duopoly Models," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 15(3), pages 243-256, March.
  4. Atkinson, Scott E. & Tietenberg, T. H., 1982. "The empirical properties of two classes of designs for transferable discharge permit markets," Journal of Environmental Economics and Management, Elsevier, vol. 9(2), pages 101-121, June.
  5. Oum, Tae Hoon & Zhang, Yimin, 1990. "Airport pricing : Congestion tolls, lumpy investment, and cost recovery," Journal of Public Economics, Elsevier, vol. 43(3), pages 353-374, December.
  6. E.T. Verhoef & P. Nijkamp & P. Rietveld & T.R. Lakshmanan, 1997. "Benefits and Costs of Transport," Tinbergen Institute Discussion Papers 97-084/3, Tinbergen Institute.
  7. Alamdari, Fariba E & Brewer, Damian, 1994. "Taxation policy for aircraft emissions," Transport Policy, Elsevier, vol. 1(3), pages 149-159, June.
  8. E.T. Verhoef & P. Nijkamp & P. Rietveld & T.R. Lakshmanan, 1997. "Benefits and Costs of Transport," Tinbergen Institute Discussion Papers 97-084/3, Tinbergen Institute.
  9. Milliman, Scott R. & Prince, Raymond, 1989. "Firm incentives to promote technological change in pollution control," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 247-265, November.
  10. R. Simpson, 1995. "Optimal pollution taxation in a Cournot duopoly," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 6(4), pages 359-369, December.
  11. Tietenberg, T H, 1990. "Economic Instruments for Environmental Regulation," Oxford Review of Economic Policy, Oxford University Press, vol. 6(1), pages 17-33, Spring.
  12. Oates, Wallace E & Portney, Paul R & McGartland, Albert M, 1989. "The Net Benefits of Incentive-Based Regulation: A Case Study of Environmental Standard Setting," American Economic Review, American Economic Association, vol. 79(5), pages 1233-42, December.
  13. Bruce Larson & George Frisvold, 1996. "Uncertainty over future environmental taxes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 8(4), pages 461-471, December.
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Cited by:
  1. Carlsson , Fredrik, 2000. "Environmental Taxation in Airline Markets," Working Papers in Economics 24, University of Gothenburg, Department of Economics.

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