IDEAS home Printed from https://ideas.repec.org/a/ris/jspord/0956.html
   My bibliography  Save this article

Welfare Gain From Carbon Tax Applied To Leisure Air Traffic

Author

Listed:

Abstract

The rapid growth in the air transport required satisfying the increased demand for tourism become a factor of unsustainability due to the substantial environmental impact that supports such a development. There is the need to establish an alternative to the traditional air transport pricing structure that reflects the true cost that air market operators impose on others. This paper analyses one application of a Carbon tax by considering the CO2 emission costs as a valuable input. A tentative tax on CO2 emissions from air transport is calculated considering its applications in leisure air transport market. Finally, one of the main conclusions of the analysis performed is that the available evidence suggests that international aviation emissions should be restricted. In this case, a Ramsey pricing structure, which involved aviation users bearing the environmental costs, would work reasonably well at restricting inefficient demand and produce a reasonable welfare gain respect to the donothing scenerywill be pointed out.

Suggested Citation

  • Martín-Cejas, Roberto & del Pino, Francisco, 2017. "Welfare Gain From Carbon Tax Applied To Leisure Air Traffic," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 5(4), pages 471-480.
    • Handle: RePEc:ris:jspord:0956
    as

    Download full text from publisher

    File URL: http://www.cieo.pt/journal/J_4_2017/article9.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
    2. Macintosh, Andrew & Wallace, Lailey, 2009. "International aviation emissions to 2025: Can emissions be stabilised without restricting demand?," Energy Policy, Elsevier, vol. 37(1), pages 264-273, January.
    3. Richard S.J. Tol, 2006. "The Impact of a Carbon Tax on International Tourism," Papers WP177, Economic and Social Research Institute (ESRI).
    4. Brons, Martijn & Pels, Eric & Nijkamp, Peter & Rietveld, Piet, 2002. "Price elasticities of demand for passenger air travel: a meta-analysis," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 165-175.
    5. Olsthoorn, Xander, 2001. "Carbon dioxide emissions from international aviation: 1950–2050," Journal of Air Transport Management, Elsevier, vol. 7(2), pages 87-93.
    6. Gossling, Stefan & Hansson, Carina Borgstrom & Horstmeier, Oliver & Saggel, Stefan, 2002. "Ecological footprint analysis as a tool to assess tourism sustainability," Ecological Economics, Elsevier, vol. 43(2-3), pages 199-211, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mayor, Karen & Tol, Richard S.J., 2007. "The impact of the UK aviation tax on carbon dioxide emissions and visitor numbers," Transport Policy, Elsevier, vol. 14(6), pages 507-513, November.
    2. Martín-Cejas, Roberto Rendeiro, 2010. "Ramsey pricing including CO2 emission cost: An application to Spanish airports," Journal of Air Transport Management, Elsevier, vol. 16(1), pages 45-47.
    3. Karen Mayor & Richard S.J. Tol, 2007. "The Impact of the EU-US Open Skies Agreement on International Travel and Carbon Dioxide Emissions," Papers WP191, Economic and Social Research Institute (ESRI).
    4. 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.
    5. Jan Vespermann & Andreas Wittmer, 2011. "Financial, ecological and managerial impacts of emission trading schemes: the case of Lufthansa," Business Strategy and the Environment, Wiley Blackwell, vol. 20(3), pages 174-191, March.
    6. Chao Bi & Jingjing Zeng, 2019. "Nonlinear and Spatial Effects of Tourism on Carbon Emissions in China: A Spatial Econometric Approach," IJERPH, MDPI, vol. 16(18), pages 1-17, September.
    7. Richard S.J. Tol, 2006. "The Impact of a Carbon Tax on International Tourism," Papers WP177, Economic and Social Research Institute (ESRI).
    8. Benoit Cheze & Julien Chevallier & Pascal Gastineau, 2012. "Will technological progress be sufficient to effectively lead the air transport to a sustainable development in the mid-term (2025)?," Working Papers 1207, Chaire Economie du climat.
    9. repec:dau:papers:123456789/9262 is not listed on IDEAS
    10. Joseph B. Sobieralski & Sarah M. Hubbard, 2020. "The Effect of Jet Fuel Tax Changes on Air Transport, Employment, and the Environment in the US," Sustainability, MDPI, vol. 12(8), pages 1-15, April.
    11. Hares, Andrew & Dickinson, Janet & Wilkes, Keith, 2010. "Climate change and the air travel decisions of UK tourists," Journal of Transport Geography, Elsevier, vol. 18(3), pages 466-473.
    12. Galindo, Luis Miguel & Beltrán, Allan & Caballero, Karina, 2018. "Potential consequences of a CO2 aviation tax in Mexico on the demand for tourism," LSE Research Online Documents on Economics 90247, London School of Economics and Political Science, LSE Library.
    13. repec:dau:papers:123456789/6792 is not listed on IDEAS
    14. Benoît Chèze & Julien Chevallier & Pascal Gastineau, 2012. "Will technological progress be sufficient to stabilize CO2 emissions from air transport in the mid-term?," EconomiX Working Papers 2012-35, University of Paris Nanterre, EconomiX.
    15. John FitzGerald & Richard S. J. Tol, 2007. "Airline emissions of carbon dioxide in the European trading system," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(01), pages 51-54, April.
    16. Benoît Chèze & Julien Chevallier & Pascal Gastineau, 2012. "Will technological progress be sufficient to stabilize CO2 emissions from air transport in the mid-term?," Working Papers hal-04141052, HAL.
    17. repec:dau:papers:123456789/6794 is not listed on IDEAS
    18. Benoit Chèze & Pascal Gastineau & Julien Chevallier, 2010. "Forecasting air traffic and corresponding jet-fuel demande until 2025," Working Papers hal-02489878, HAL.
    19. González, Rodrigo & Hosoda, Eiji B., 2016. "Environmental impact of aircraft emissions and aviation fuel tax in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 234-240.
    20. Fabio Iraldo & Benedetta Nucci, 2016. "Proactive environmental management in hotels: What difference does it make?," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(2), pages 81-106.
    21. Pycroft, Jonathan & Vergano, Lucia & Hope, Chris & Paci, Daniele & Ciscar, Juan Carlos, 2011. "A tale of tails: Uncertainty and the social cost of carbon dioxide," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 5, pages 1-29.
    22. Andrei Afilipoaei & Gustavo Carrero, 2023. "A Mathematical Model of Financial Bubbles: A Behavioral Approach," Mathematics, MDPI, vol. 11(19), pages 1-17, September.
    23. World Bank, 2009. "The Service Revolution in South Asia," World Bank Publications - Reports 19332, The World Bank Group.

    More about this item

    Keywords

    Welfare; Carbon Dioxide Emissions; Environmental Costs; Environmental Taxation.;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jspord:0956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Silvia Fernandes (email available below). General contact details of provider: https://edirc.repec.org/data/ctalgpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.