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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. [Other]

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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/201604/
Document Type:Other
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 iDORCID Put Code
Oesingmann, KatrinUNSPECIFIEDhttps://orcid.org/0000-0002-2206-7527UNSPECIFIED
Date:1 February 2022
Journal or Publication Title:Vortrag
Refereed publication:No
Open Access:No
Gold Open Access:No
In SCOPUS:No
In ISI Web of Science:No
Series Name:Austausch DLR und BDL
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
Location: Köln-Porz
Institutes and Institutions:Institute of Air Transport > Air Transport Economics
Deposited By: Oesingmann, Katrin
Deposited On:22 Dec 2023 08:53
Last Modified:22 Dec 2023 08:53

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