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Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU

  • Anger, Annela
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    In July 2008, motivated by the expected high growth of aviation and the related impacts on climate change, the European Parliament adopted a directive to include airlines in the European Emissions Trading Scheme. This paper discusses possible impacts of this inclusion on the aviation industry in terms of CO2 emissions and the macroeconomic activity in the EU. The analysis uses the Energy–Environment–Economy Model for Europe, a dynamic simulation model to investigate impacts of the European Emissions Trading Scheme on air transport. The impacts on air transport output and the macroeconomic effects are estimated to be small. This was robust to varying the carbon price. However, air transport CO2 emissions were expected to decrease by up to 7.4%, which is more than that estimated previously and stems mainly from the supply-side reaction of the industry.

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    Article provided by Elsevier in its journal Journal of Air Transport Management.

    Volume (Year): 16 (2010)
    Issue (Month): 2 ()
    Pages: 100-105

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    Handle: RePEc:eee:jaitra:v:16:y:2010:i:2:p:100-105
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    1. Karen Mayor & Richard S.J. Tol, 2007. "The Impact Of The Uk Aviation Tax On Carbon Dioxide Emissions And Visitor Numbers," Working Papers FNU-131, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2007.
    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.
    3. Morrell, Peter, 2007. "An evaluation of possible EU air transport emissions trading scheme allocation methods," Energy Policy, Elsevier, vol. 35(11), pages 5562-5570, November.
    4. Jonathan Köhler & Ying Jin & Terry Barker, 2008. "Integrated Modelling of EU Transport Policy: Assessing Economic Growth Impacts from Social Marginal Cost Pricing and Infrastructure Investment," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 42(1), pages 1-21, January.
    5. Ekins, Paul & Barker, Terry, 2001. " Carbon Taxes and Carbon Emissions Trading," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 325-76, July.
    6. Barker, Terry & Junankar, Sudhir & Pollitt, Hector & Summerton, Philip, 2007. "Carbon leakage from unilateral Environmental Tax Reforms in Europe, 1995-2005," Energy Policy, Elsevier, vol. 35(12), pages 6281-6292, December.
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