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The Impact Of The Eu-Us Open Skies Agreement On International Travel And Carbon Dioxide Emissions

Author

Listed:
  • Karen Mayor
  • Richard S.J. Tol

    (Economic and Social Research Institute, Dublin)

Abstract

We use a model of domestic and international tourist numbers and flows to estimate the impact of the EU-US Open Skies agreement that is to take effect in March 2008. The Open Aviation Area will result in increased competition between transatlantic carriers and consequently falls in the cost of flights, therefore we look at the change in visitor numbers from the US into the EU and corresponding CO2 emissions. We find that passenger numbers arriving from the US to the EU will increase by approximately 1% and 14% depending on the magnitude of the price reductions. This increase in passenger numbers does not however result in a corresponding rise in emissions as arrivals into other countries from the US fall by a comparable amount. The number of tourist arrivals from the US to countries outside of the EU will fall and overall emissions would then increase by a maximum of 0.7%. If we assume that domestic holidays and foreign holidays are close substitutes these effects are strengthened and US passengers switch from domestic trips to foreign destinations as airfares converge.

Suggested Citation

  • Karen Mayor & Richard S.J. Tol, 2007. "The Impact Of The Eu-Us Open Skies Agreement On International Travel And Carbon Dioxide Emissions," Working Papers FNU-134, Research unit Sustainability and Global Change, Hamburg University, revised Apr 2007.
  • Handle: RePEc:sgc:wpaper:134
    as

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    References listed on IDEAS

    as
    1. Tol, Richard S. J., 2005. "The marginal damage costs of carbon dioxide emissions: an assessment of the uncertainties," Energy Policy, Elsevier, vol. 33(16), pages 2064-2074, November.
    2. Mayor, Karen & Tol, Richard S.J., 2007. "The impact of the UK aviation tax on carbon dioxide emissions and visitor numbers," Transport Policy, Elsevier, vol. 14(6), pages 507-513, November.
    3. Bows, Alice & Anderson, Kevin L., 2007. "Policy clash: Can projected aviation growth be reconciled with the UK Government's 60% carbon-reduction target?," Transport Policy, Elsevier, vol. 14(2), pages 103-110, March.
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    7. Richard S.J. Tol, 2006. "The Impact Of A Carbon Tax On International Tourism," Working Papers FNU-120, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2006.
    8. Brueckner, Jan K & Spiller, Pablo T, 1994. "Economies of Traffic Density in the Deregulated Airline Industry," Journal of Law and Economics, University of Chicago Press, vol. 37(2), pages 379-415, October.
    9. Njegovan, Nenad, 2006. "Elasticities of demand for leisure air travel: A system modelling approach," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 33-39.
    10. Tae H. Oum & Waters, W.G. & Jong Say Yong, 1990. "A survey of recent estimates of price elasticities of demand for transport," Policy Research Working Paper Series 359, The World Bank.
    11. Andrea Bigano & Jacqueline M. Hamilton & Richard S.J. Tol, 2005. "The Impact Of Climate Change On Domestic And International Tourism: A Simulation Study," Working Papers FNU-58, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2005.
    12. Jacqueline M. Hamilton & David J. Maddison & Richard S.J. Tol, 2004. "The Effects Of Climate Change On International Tourism," Working Papers FNU-36, Research unit Sustainability and Global Change, Hamburg University, revised Jan 2004.
    13. Pearce, David, 2006. "The political economy of an energy tax: The United Kingdom's Climate Change Levy," Energy Economics, Elsevier, vol. 28(2), pages 149-158, March.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Gary W. Yohe & Richard S.J. Tol, 2007. "Precaution And A Dismal Theorem: Implications For Climate Policy And Climate Research," Working Papers FNU-145, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2007.
    2. Karen Mayor & Richard S. J. Tol, 2008. "European Climate Policy and Aviation Emissions," Papers WP241, Economic and Social Research Institute (ESRI).
    3. Karen Mayor & Richard S. J. Tol, 2008. "Aviation and the Environment in the Context of the EU-US Open Skies Agreement," Papers WP240, Economic and Social Research Institute (ESRI).
    4. Button, Kenneth, 2009. "The impact of US–EU “Open Skies†agreement on airline market structures and airline networks," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 59-71.
    5. Mayor, Karen & Tol, Richard S.J., 2009. "Aviation and the environment in the context of the EU–US Open Skies agreement," Journal of Air Transport Management, Elsevier, vol. 15(2), pages 90-95.
    6. Christine Schleupner & P. Michael Link, 2008. "Eiderstedt im Spannungsfeld zwischen Naturschutz- und Agrarpolitik - Entwicklung eines methodischen Ansatzes für ein nachhaltiges Ressourcenmanagement," Working Papers FNU-168, Research unit Sustainability and Global Change, Hamburg University, revised Aug 2008.
    7. Karen Mayor & Richard S. J. Tol, 2008. "Scenarios of Carbon Dioxide Emissions from Aviation," Papers WP244, Economic and Social Research Institute (ESRI).
    8. P. Michael Link & C. Ivie Ramos & Uwe A. Schneider & Erwin Schmid & J. Balkovic & R. Skalsky, 2008. "The interdependencies between food and biofuel production in European agriculture - an application of EUFASOM," Working Papers FNU-165, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2008.
    9. Wen-Hsien Tsai & Shang-Yu Lai, 2018. "Green Production Planning and Control Model with ABC under Industry 4.0 for the Paper Industry," Sustainability, MDPI, vol. 10(8), pages 1-29, August.

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    More about this item

    Keywords

    International tourism; open skies agreement; carbon dioxide emissions;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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