The economics of CO2 emissions trading for aviation

This study focuses on carbon dioxide emissions from aircraft engines, which have both local and climate change implications, and where the emphasisof most recent discussions has centred. The EU has set limits on local air quality that affects emission levels around airports, especially from nitrogen oxides. At the local level, a few airports have introduced emissions charges, and local air quality has become an important issue in airport expansion planning applications. The policy options for air transport include rationing the number of flights operated (but this is almost impossible to administer fairly at an international level), setting stricter standards fro new aircraft and engines, replacing fossil fuels with biofuels, orvoluntary emission reduction targets but none of these options use marketmechanisms. Capping emissions at a certain level and allowing entities tobuy and sell emissions permits according to whether they are above or below the cap is investigated compared with the alternative of a fuel or emissions tax. An emissions trading system is considered likely in Europe by 2012 for carbon dioxide. The mechanisms by which this scheme might operate and its effects on competing airlines are outlined. The costs incurred by airlines as a result of the scheme can either be absorbed in reduced profits, passed on to the consumer as higher fares or a combination of the two,with the assumption made that the increased costs would be passed on to the consumer unless competition at a particular airport was fierce. The increased cost to the consumer would be lower than recent fuel tax surchargesso it is considered likely to have only a limited effect on air traffic growth.

• Record URL:
  http://www.internationaltransportforum.org/jtrc/discussionpapers/DP200929.pdf
• 
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9789282102657
• Corporate Authors:

  Organisation for Economic Co-operation and Development (OECD)

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  International Transport Forum

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• Authors:
  • MORRELL, P
• Conference:
  • 18th International ITF/OECD Symposium on Transport Economics and Policy
  • Location: Madrid , Spain
  • Date: 2009-11-16 to 2009-11-18
• Publication Date: 2010

Language

• English

Media Info

• Pagination: p459-81
• Monograph Title: The future for interurban passenger transport. Bringing citizens closer together. 18th International symposium on transport economics and policy

Subject/Index Terms

• TRT Terms: Air quality management; Air traffic; Air transportation; Airlines; Carbon dioxide; Conferences; Demand; Economics; Policy; Transportation
• Subject Areas: Aviation; Economics; Policy; I15: Environment; I70: Traffic and Transport; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01166146
• Record Type: Publication
• Source Agency: TRL
• ISBN: 9789282102657
• Files: ITRD
• Created Date: Aug 26 2010 8:43AM