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Will the EU-ETS instigate airline network reconfigurations?


  • Albers, Sascha
  • Bühne, Jan-André
  • Peters, Heiko


Based on the proposal of the European Commission on including the aviation sector into the European Emission Trading Scheme, a route-based analysis is conducted simulating cost and demand implications for selected airlines. For a scenario of €20/tons CO2, results indicate that the EU-ETS CO2-based cost increases for the airlines are between €9 and €27 per route and therefore, as an individual factor, are not high enough to instigate major route reconfigurations among European airlines.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jaitra:v:15:y:2009:i:1:p:1-6
    DOI: 10.1016/j.jairtraman.2008.09.013

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    References listed on IDEAS

    1. Golaszewski, Richard, 2002. "Reforming air traffic control: an assessment from the American perspective," Journal of Air Transport Management, Elsevier, vol. 8(1), pages 3-11.
    2. 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.
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    Cited by:

    1. 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.
    2. Derigs, Ulrich & Illing, Stefan, 2013. "Does EU ETS instigate Air Cargo network reconfiguration? A model-based analysis," European Journal of Operational Research, Elsevier, vol. 225(3), pages 518-527.
    3. Anger, Annela & Köhler, Jonathan, 2010. "Including aviation emissions in the EU ETS: Much ado about nothing? A review," Transport Policy, Elsevier, vol. 17(1), pages 38-46, January.
    4. Li, Ye & Wang, Yan-zhang & Cui, Qiang, 2016. "Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012," Energy, Elsevier, vol. 96(C), pages 8-22.
    5. Sheu, Jiuh-Biing, 2014. "Airline ambidextrous competition under an emissions trading scheme – A reference-dependent behavioral perspective," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 115-145.
    6. Malina, Robert & McConnachie, Dominic & Winchester, Niven & Wollersheim, Christoph & Paltsev, Sergey & Waitz, Ian A., 2012. "The impact of the European Union Emissions Trading Scheme on US aviation," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 36-41.
    7. Sven Maertens & Wolfgang Grimme & Janina Scheelhaase & Martin Jung, 2019. "Options to Continue the EU ETS for Aviation in a CORSIA-World," Sustainability, MDPI, Open Access Journal, vol. 11(20), pages 1-19, October.
    8. Zhang, Yue-Jun & Wei, Yi-Ming, 2010. "An overview of current research on EU ETS: Evidence from its operating mechanism and economic effect," Applied Energy, Elsevier, vol. 87(6), pages 1804-1814, June.
    9. Cui, Qiang & Wei, Yi-Ming & Li, Ye, 2016. "Exploring the impacts of the EU ETS emission limits on airline performance via the Dynamic Environmental DEA approach," Applied Energy, Elsevier, vol. 183(C), pages 984-994.
    10. Jan K. Brueckner & Anming Zhang, 2009. "Airline Emission Charges: Effects on Airfares, Service Quality, and Aircraft Design," CESifo Working Paper Series 2547, CESifo Group Munich.
    11. Sheng, Dian & Li, Zhi-Chun & Fu, Xiaowen & Gillen, David, 2017. "Modeling the effects of unilateral and uniform emission regulations under shipping company and port competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 99-114.
    12. 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.
    13. 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.
    14. 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.
    15. Adler, Nicole & Pels, Eric & Nash, Chris, 2010. "High-speed rail and air transport competition: Game engineering as tool for cost-benefit analysis," Transportation Research Part B: Methodological, Elsevier, vol. 44(7), pages 812-833, August.
    16. Cui, Qiang & Li, Ye, 2017. "Airline efficiency measures under CNG2020 strategy: An application of a Dynamic By-production model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 130-143.
    17. 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.
    18. Winchester, Niven, 2019. "A win-win solution to abate aviation CO2 emissions," Journal of Air Transport Management, Elsevier, vol. 80(C), pages 1-1.
    19. 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.
    20. 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.
    21. Zanin, Massimiliano & Delibasi, Tuba Toru & Triana, Julio César & Mirchandani, Vaishali & à lvarez Pereira, Emilio & Enrich, Alberto & Perez, David & Paşaoğlu, Cengiz & Fidanoglu, Melih & Koyuncu, , 2016. "Towards a secure trading of aviation CO2 allowance," Journal of Air Transport Management, Elsevier, vol. 56(PA), pages 3-11.

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    Strategy; Airlines; Emission Trading; Route network;


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