IDEAS home Printed from https://ideas.repec.org/h/spr/eurchp/978-3-031-30061-5_27.html
   My bibliography  Save this book chapter

The Economic Impacts of EU Climate Policies on Intra-European Aviation

In: Eurasian Business and Economics Perspectives

Author

Listed:
  • Katrin Oesingmann

    (Institute of Air Transport, German Aerospace Center (DLR))

Abstract

. This study analyzes the economic impacts of the Fit for 55 policy measures proposed by the European Commission for air transport. The methodology used in this paper is based on simulation modeling of different scenarios of how costs will increase and demand will decrease between 2023 and 2050. Various projected economic and key aviation-specific statistics serve as input variables for the model. The results indicate the following: All of the measures proposed by the European Commission have the potential to make flying more expensive, albeit to different degrees. Moreover, the full impacts of each measure take effect at different times in the future. Until 2035, the kerosene tax and the European Emissions Trading System (EU ETS) have the largest impact on airline costs. The costs incurred by a quota for sustainable aviation fuels (SAF) increase after 2035. The highest total cost impact is given in the medium term (2035–2040), when costs add up to 2.50 euros per 100 passenger kilometers (RPK) in the reference scenario. With an increasing SAF ratio, the total cost impact decreases in the long run to 2.09 euros per 100 RPK in 2050. Assuming 100% pass-through to customers and negative price elasticities, the decrease in demand for intra-European transport amounts to a maximum of −23% in the reference scenario. Additional costs and decrease in demand are likely to be higher in the medium term (2035–2040) than in the long term (2050).

Suggested Citation

  • Katrin Oesingmann, 2023. "The Economic Impacts of EU Climate Policies on Intra-European Aviation," Eurasian Studies in Business and Economics, in: Ender Demir & Mehmet Hüseyin Bilgin & Hakan Danis & Fabrizio D'Ascenzo (ed.), Eurasian Business and Economics Perspectives, pages 433-452, Springer.
    • Handle: RePEc:spr:eurchp:978-3-031-30061-5_27
    DOI: 10.1007/978-3-031-30061-5_27
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    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:spr:eurchp:978-3-031-30061-5_27. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.