Climate ambitions for European aviation: where can sustainable aviation fuels bring us?

Inge Mayeres, Stefaan Proost, Ees Delhaye, Philippe Novelli, Sjaak Conijn, Inmaculada Gómez-Jiménez and Daniel Rivas-Brousse

No 671929, Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven

Abstract: This paper assesses the costs of policies to promote the uptake of sustainable aviation fuels to reduce the greenhouse gas emissions of aviation in the EU. Different policies for attaining a minimum sustainable aviation fuel share are assessed, taking into account sustainability requirements and the costs and potential of feedstock supply. The cost-effectiveness of these policies are compared to simpler CORSIA-type emission trading schemes, using a model that combines the demand functions for road, rail and maritime transport fuels, the supply functions of the related feedstocks as well as the environmental sustainability characteristics of the fuels. For aviation a distinction is made between fuel demand for intra-EU flights and for incoming and outbound EU flights. It is shown that policies that aim to achieve a minimum share of 3.5 % or 5.25 % sustainable aviation fuels by 2030 in the EU are 5 to 10 times more expensive to reduce greenhouse gas emissions than a simpler emission trading mechanism like CORSIA.

Keywords: Sustainable aviation fuels; aviation; climate policy; blending mandate; fuel tax; carbon offsets (search for similar items in EconPapers)
Pages: 37
Date: 2021
Note: paper number DPS 21.05
References: Add references at CitEc
Citations:

Published in FEB Research Report Department of Economics

Downloads: (external link)
https://lirias.kuleuven.be/retrieve/0dc6ca9e-aca5-435c-a124-adfadcb818b6 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ete:ceswps:671929

Access Statistics for this paper

More papers in Working Papers of Department of Economics, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven
Bibliographic data for series maintained by library EBIB ().