Inclusion of the aviation sector into the emission trading scheme: an economic analysis

Estelle Malavolti () and Marion Podesta ()
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Estelle Malavolti: LEEA - ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien - ENAC - Ecole Nationale de l'Aviation Civile, TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique

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Abstract: The air transport sector is going to enter the European Trading Scheme in 2012. The regulation of CO2 emissions is costly for airlines and modifies the organization of their market. Our paper proposes an economic analysis in which the regulation but also CO2 emissions of airlines are modelled. We show that, in a perfect competition setting, the difference between passengers carried without regulation and when the regulation is considered is negative for the best-performing planes. However, for the less efficient aircraft, the implementation of the regulation entails a reduction of airlines activity, and therefore a low level of carbon emissions.

Keywords: air transport; emissions trading scheme; regulation (search for similar items in EconPapers)
Date: 2011-09-01
Note: View the original document on HAL open archive server: https://enac.hal.science/hal-01022239v1
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Published in EARIE 2011, 38th Annual Conference of the European Association for Research in Industrial Economics, Sep 2011, Stockholm, Sweden. pp xxxx

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