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Emissions trading for international aviation—an estimation of the economic impact on selected European airlines


  • Scheelhaase, Janina D.
  • Grimme, Wolfgang G.


International aviation is responsible for between 2.5% and 3% of anthropogenic carbon dioxide (CO2) emissions that are partly held responsible for climate change. International aviation is not subject to any regulatory framework for the limitation of these emissions. From an economic point of view, the introduction of an emissions trading scheme would be an appropriate instrument to limit these emissions. This paper outlines the possibilities on how aviation could be included in existing emissions trading schemes and gives an overview on the current political discussion. It continues with an empirical estimation of the impacts on operating costs and transport demand for low cost, full service, holiday and regional airlines taking Ryanair, Lufthansa, Condor and Air Dolomiti as examples, under three different design options for an emissions trading scheme. Finally, conclusions about the impacts on intra-European and worldwide airline competition are drawn.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jaitra:v:13:y:2007:i:5:p:253-263
    DOI: 10.1016/j.jairtraman.2007.04.010

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    References listed on IDEAS

    1. 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.
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    Cited by:

    1. Tiziana D'Alfonso & Changmin Jiang & Valentina Bracaglia, 2015. "Air transport and high-speed rail competition: environmental implications and mitigation strategies," DIAG Technical Reports 2015-15, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    2. Brueckner, Jan K. & Zhang, Anming, 2010. "Airline emission charges: Effects on airfares, service quality, and aircraft design," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 960-971, September.
    3. Pagoni, Ioanna & Psaraki-Kalouptsidi, Voula, 2016. "The impact of carbon emission fees on passenger demand and air fares: A game theoretic approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 41-51.
    4. repec:gam:jsusta:v:9:y:2017:i:7:p:1247-:d:104856 is not listed on IDEAS
    5. repec:eee:jaitra:v:62:y:2017:i:c:p:10-17 is not listed on IDEAS
    6. Anger, Annela, 2010. "Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 100-105.
    7. Estelle Malavolti & Marion Podesta, 2011. "Inclusion of the aviation sector into the emission trading scheme : an economic analysis," Post-Print hal-01022239, HAL.
    8. Rosskopf, Michael & Lehner, Stephan & Gollnick, Volker, 2014. "Economic–environmental trade-offs in long-term airline fleet planning," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 109-115.
    9. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.
    10. Miyoshi, Chikage, 2014. "Assessing the equity impact of the European Union Emission Trading Scheme on an African airline," Transport Policy, Elsevier, vol. 33(C), pages 56-64.
    11. 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.
    12. Koopmans, Carl & Lieshout, Rogier, 2016. "Airline cost changes: To what extent are they passed through to the passenger?," Journal of Air Transport Management, Elsevier, vol. 53(C), pages 1-11.
    13. Cohen, Maurie J., 2010. "Destination unknown: Pursuing sustainable mobility in the face of rival societal aspirations," Research Policy, Elsevier, vol. 39(4), pages 459-470, May.
    14. Forsyth, Peter, 2011. "Environmental and financial sustainability of air transport: Are they incompatible?," Journal of Air Transport Management, Elsevier, vol. 17(1), pages 27-32.
    15. Armin Ibitz, 2015. "Towards a global scheme for carbon emissions reduction in aviation: China’s role in blocking the extension of the European Union’s Emissions Trading Scheme," Asia Europe Journal, Springer, vol. 13(2), pages 113-130, June.
    16. Brueckner, Jan K. & Abreu, Chrystyane, 2017. "Airline fuel usage and carbon emissions: Determining factors," Journal of Air Transport Management, Elsevier, vol. 62(C), pages 10-17.
    17. Sungwook Yoon & Sukjae Jeong, 2016. "Carbon Emission Mitigation Potentials of Different Policy Scenarios and Their Effects on International Aviation in the Korean Context," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-21, November.
    18. Albers, Sascha & Bühne, Jan-André & Peters, Heiko, 2009. "Will the EU-ETS instigate airline network reconfigurations?," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 1-6.
    19. Jiuh-Biing Sheu & Fang Li, 2014. "Market Competition and Greening Transportation of Airlines Under the Emission Trading Scheme: A Case of Duopoly Market," Transportation Science, INFORMS, vol. 48(4), pages 684-694, November.
    20. 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.


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