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The effect of the European Emissions Trading System (EU ETS) on aviation demand: An empirical comparison with the impact of ticket taxes

Oesingmann, Katrin (2022) The effect of the European Emissions Trading System (EU ETS) on aviation demand: An empirical comparison with the impact of ticket taxes. Energy Policy, 160, p. 112657. Elsevier. doi: 10.1016/j.enpol.2021.112657. ISSN 0301-4215.

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Official URL: https://www.sciencedirect.com/science/article/pii/S030142152100522X?via%3Dihub

Abstract

To regulate the rising environmental impact of flying, the EU integrated aviation into the European Emissions Trading System (EU ETS) in 2012. This study gives an empirical ex-post evaluation on the effect of the EU ETS on aviation demand using a gravity model approach. The results of the Poisson pseudo-maximum likelihood (PPML) estimates suggest that the EU ETS has so far had no statistically significant effects on intra-EEA (European Economic Area) air passenger flows. This study additionally controls for the impact of the Austrian and German air transportation tax on aviation demand. The ticket tax brings about statistically significant and robust demand reductions on the affected country-pairs. But although the tax reduces demand, this policy may still not be the adequate measure as the aviation taxes that are in place do not relate to the amount of CO2 emitted by air travel. Generally, policy instruments are preferred that incentivize emission reductions, as is the case with kerosene taxes or emissions trading systems (ETS).

Item URL in elib:https://elib.dlr.de/145468/
Document Type:Article
Title:The effect of the European Emissions Trading System (EU ETS) on aviation demand: An empirical comparison with the impact of ticket taxes
Authors:
AuthorsInstitution or Email of AuthorsAuthor's ORCID iD
Oesingmann, Katrinkatrin.oesingmann (at) dlr.dehttps://orcid.org/0000-0002-2206-7527
Date:January 2022
Journal or Publication Title:Energy Policy
Refereed publication:Yes
Open Access:No
Gold Open Access:No
In SCOPUS:Yes
In ISI Web of Science:Yes
Volume:160
DOI :10.1016/j.enpol.2021.112657
Page Range:p. 112657
Editors:
EditorsEmailEditor's ORCID iD
Thomas, Stephen D.University of Greenwich, London, United KingdomUNSPECIFIED
Publisher:Elsevier
ISSN:0301-4215
Status:Published
Keywords:EU ETS, Emissions trading system, Aviation taxes, Gravity model, PPML estimation. Fixed effects
HGF - Research field:Aeronautics, Space and Transport
HGF - Program:Transport
HGF - Program Themes:Transport System
DLR - Research area:Transport
DLR - Program:V VS - Verkehrssystem
DLR - Research theme (Project):V - Ökonver II, V - Transition
Location: Köln-Porz
Institutes and Institutions:Institute of Air Transport and Airport Research > Air Transport Economics
Deposited By: Oesingmann, Katrin
Deposited On:11 Jan 2022 10:22
Last Modified:11 Jan 2022 10:22

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