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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


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.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jaitra:v:16:y:2010:i:2:p:100-105 DOI: 10.1016/j.jairtraman.2009.10.009

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    References listed on IDEAS

    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. Ekins, Paul & Barker, Terry, 2001. " Carbon Taxes and Carbon Emissions Trading," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 325-376, July.
    3. 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, University of Bath, vol. 42(1), pages 1-21, January.
    4. 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.
    5. 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.
    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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    Air transport; Emissions trading; Climate change; CO2 emissions;

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