ENVIRONMENTAL COSTS IN EUROPEAN AVIATION

In order to judge the merits of alternative resource allocations in markets where externalities are present, it is necessary to place monetary values on external effects. In this study, estimates of environmental costs are calculated in a set of 36 European airline markets. Costs are calculated for noise, air pollution and accident risk using data on aircraft emissions, exposure-response parameters and economic valuation of environmental goods. The "medium value" cost estimate is 0.0201ECU per passenger-km. This result suggests that environmental costs represent only a small faction (2.5%) of the internal cost of aviation as measured by the average ticket price. Noise costs are the dominant environmental cost at some 75% of the cost total. The medium estimates are sensitive to changes in the various assumptions in the pathways: low and high estimates are three times lower and five times higher, respectively, than the medium estimate. Results also suggest that there are environmental economies of scale in air transport. It is also shown that Chapter 2 aircraft are about four times more environmentally costly than Chapter 3 aircraft. Pricing environmental externalities will therefore stimulate the use of newer aircraft by airlines.

  • Availability:
  • Corporate Authors:

    Elsevier

    The Boulevard, Langford Lane
    Kidlington, Oxford  United Kingdom  OX5 1GB
  • Authors:
    • Schipper, Y
  • Publication Date: 2004-4

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00974023
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 13 2004 12:00AM