The impact of the European Union Emissions Trading Scheme on US aviation

The impact of the European Union Emissions Trading Scheme on US aviation We estimate the economic impacts on US airlines that may arise from the inclusion of aviation in the European Union Emissions Trading Scheme from 2012 to 2020. We find that the Scheme would only have a small impact on US airlines and emissions, and that aviation operations would continue to grow. If carriers pass on all additional costs, including the opportunity costs associated with free allowances, to consumers, profits for US carriers will increase. Windfall gains from free allowances may be substantial because, under current allocation rules, airlines would only have to purchase about a third of the required allowances. However, an increase in the proportion of allowances auctioned would reduce windfall gains and profits for US airlines may decline. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Air Transport Management Elsevier

The impact of the European Union Emissions Trading Scheme on US aviation

Loading next page...
 
/lp/elsevier/the-impact-of-the-european-union-emissions-trading-scheme-on-us-UrHdTq5OPA
Publisher
Elsevier
Copyright
Copyright © 2011 Elsevier Ltd
ISSN
0969-6997
eISSN
1873-2089
D.O.I.
10.1016/j.jairtraman.2011.12.004
Publisher site
See Article on Publisher Site

Abstract

We estimate the economic impacts on US airlines that may arise from the inclusion of aviation in the European Union Emissions Trading Scheme from 2012 to 2020. We find that the Scheme would only have a small impact on US airlines and emissions, and that aviation operations would continue to grow. If carriers pass on all additional costs, including the opportunity costs associated with free allowances, to consumers, profits for US carriers will increase. Windfall gains from free allowances may be substantial because, under current allocation rules, airlines would only have to purchase about a third of the required allowances. However, an increase in the proportion of allowances auctioned would reduce windfall gains and profits for US airlines may decline.

Journal

Journal of Air Transport ManagementElsevier

Published: Mar 1, 2012

References

  • Will the EU-ETS instigate airline network reconfigurations?
    Albers, S.; Bühne, J.A.; Peters, H.
  • The Impact of Climate Change Policy on Competition in the Air Transport Industry
    Forsyth, P.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off