IDEAS home Printed from https://ideas.repec.org/a/eee/trapol/v33y2014icp56-64.html
   My bibliography  Save this article

Assessing the equity impact of the European Union Emission Trading Scheme on an African airline

Author

Listed:
  • Miyoshi, Chikage

Abstract

The European Union Emission Trading Scheme (EU ETS) included aviation activity in 2012, with free emissions allowances being allocated to each airline. The EU ETS is a market-based measure, which the European Union has introduced for aiming at reducing emissions and meeting the targets specified under the Kyoto Protocol. One of the largest issues is equity. The first multinational emission trading scheme resulted in many regulatory issues and objections by a number of countries and airlines concerning its legality under the Chicago Convention. In addition, under the Kyoto Protocol, ratified countries have different responsibilities and roles based on whether they are Annex I or non-Annex I countries. Hence, this paper attempted to investigate the equity issues by measuring the impact of the EU ETS on an African airline compared to airlines in an Annex I country. The results of case study indicate that there are some differences in terms of equity between Annex I and non-Annex I carriers and their passengers. The instrument is proven to be cost-effective; however, the economic rationality arguments seem to be weak with respect to the volatility in individual behaviour and the vulnerability of non-Annex I carriers which is caused by competition with Annex-I carriers. A transparent distribution of revenue from the EU ETS could be one way of moderating the equity gap between carriers and passengers.

Suggested Citation

  • Miyoshi, Chikage, 2014. "Assessing the equity impact of the European Union Emission Trading Scheme on an African airline," Transport Policy, Elsevier, vol. 33(C), pages 56-64.
    • Handle: RePEc:eee:trapol:v:33:y:2014:i:c:p:56-64
    DOI: 10.1016/j.tranpol.2014.02.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0967070X14000419
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tranpol.2014.02.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Yue-Jun & Wei, Yi-Ming, 2010. "An overview of current research on EU ETS: Evidence from its operating mechanism and economic effect," Applied Energy, Elsevier, vol. 87(6), pages 1804-1814, June.
    2. Morrell, Peter, 2007. "An evaluation of possible EU air transport emissions trading scheme allocation methods," Energy Policy, Elsevier, vol. 35(11), pages 5562-5570, November.
    3. Albers, Sascha & Bühne, Jan-André & Peters, Heiko, 2009. "Will the EU-ETS instigate airline network reconfigurations?," Journal of Air Transport Management, Elsevier, vol. 15(1), pages 1-6.
    4. Miyoshi, C. & Mason, K.J., 2009. "The carbon emissions of selected airlines and aircraft types in three geographic markets," Journal of Air Transport Management, Elsevier, vol. 15(3), pages 138-147.
    5. Anger, Annela, 2010. "Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 100-105.
    6. Malina, Robert & McConnachie, Dominic & Winchester, Niven & Wollersheim, Christoph & Paltsev, Sergey & Waitz, Ian A., 2012. "The impact of the European Union Emissions Trading Scheme on US aviation," Journal of Air Transport Management, Elsevier, vol. 19(C), pages 36-41.
    7. Bredin, Don & Muckley, Cal, 2011. "An emerging equilibrium in the EU emissions trading scheme," Energy Economics, Elsevier, vol. 33(2), pages 353-362, March.
    8. Scheelhaase, Janina D. & Grimme, Wolfgang G., 2007. "Emissions trading for international aviation—an estimation of the economic impact on selected European airlines," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 253-263.
    9. Eliasson, Jonas & Mattsson, Lars-Göran, 2006. "Equity effects of congestion pricing: Quantitative methodology and a case study for Stockholm," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(7), pages 602-620, August.
    10. Pentelow, Laurel & Scott, Daniel J., 2011. "Aviation’s inclusion in international climate policy regimes: Implications for the Caribbean tourism industry," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 199-205.
    11. Sgouridis, Sgouris & Bonnefoy, Philippe A. & Hansman, R. John, 2011. "Air transportation in a carbon constrained world: Long-term dynamics of policies and strategies for mitigating the carbon footprint of commercial aviation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1077-1091.
    12. Derigs, Ulrich & Illing, Stefan, 2013. "Does EU ETS instigate Air Cargo network reconfiguration? A model-based analysis," European Journal of Operational Research, Elsevier, vol. 225(3), pages 518-527.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pagoni, Ioanna & Psaraki-Kalouptsidi, Voula, 2016. "The impact of carbon emission fees on passenger demand and air fares: A game theoretic approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 41-51.
    2. Cui, Qiang & Wei, Yi-Ming & Li, Ye, 2016. "Exploring the impacts of the EU ETS emission limits on airline performance via the Dynamic Environmental DEA approach," Applied Energy, Elsevier, vol. 183(C), pages 984-994.
    3. Miyoshi, Chikage & Fukui, Hideki, 2018. "Measuring the rebound effects in air transport: The impact of jet fuel prices and air carriers’ fuel efficiency improvement of the European airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 112(C), pages 71-84.
    4. Miyoshi, Chikage & Ibáñez, Eva Ruiz, 2016. "Are fuel-efficient aircraft worth investing in for non-Annex country airlines? An empirical analysis of Kenya Airways with an aircraft appraisal cost–benefit analysis model," Transport Policy, Elsevier, vol. 47(C), pages 41-54.
    5. Cui, Qiang & Li, Ye, 2017. "Airline efficiency measures under CNG2020 strategy: An application of a Dynamic By-production model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 130-143.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pagoni, Ioanna & Psaraki-Kalouptsidi, Voula, 2016. "The impact of carbon emission fees on passenger demand and air fares: A game theoretic approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 41-51.
    2. Cui, Qiang & Wei, Yi-Ming & Li, Ye, 2016. "Exploring the impacts of the EU ETS emission limits on airline performance via the Dynamic Environmental DEA approach," Applied Energy, Elsevier, vol. 183(C), pages 984-994.
    3. Kang, Yicheng & Liao, Sha & Jiang, Changmin & D’Alfonso, Tiziana, 2022. "Synthetic control methods for policy analysis: Evaluating the effect of the European Emission Trading System on aviation supply," Transportation Research Part A: Policy and Practice, Elsevier, vol. 162(C), pages 236-252.
    4. Li, Ye & Wang, Yan-zhang & Cui, Qiang, 2016. "Has airline efficiency affected by the inclusion of aviation into European Union Emission Trading Scheme? Evidences from 22 airlines during 2008–2012," Energy, Elsevier, vol. 96(C), pages 8-22.
    5. Sungwook Yoon & Sukjae Jeong, 2016. "RETRACTED: Carbon Emission Mitigation Potentials of Different Policy Scenarios and Their Effects on International Aviation in the Korean Context," Sustainability, MDPI, vol. 8(11), pages 1-21, November.
    6. D’Alfonso, Tiziana & Jiang, Changmin & Bracaglia, Valentina, 2016. "Air transport and high-speed rail competition: Environmental implications and mitigation strategies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 261-276.
    7. Sheu, Jiuh-Biing, 2014. "Airline ambidextrous competition under an emissions trading scheme – A reference-dependent behavioral perspective," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 115-145.
    8. Cui, Qiang & Lin, Jing-ling & Jin, Zi-yin, 2020. "Evaluating airline efficiency under “Carbon Neutral Growth from 2020” strategy through a Network Interval Slack-Based Measure," Energy, Elsevier, vol. 193(C).
    9. Cui, Qiang & Li, Ye, 2017. "Airline efficiency measures under CNG2020 strategy: An application of a Dynamic By-production model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 130-143.
    10. Cui, Qiang & Li, Ye & Wei, Yi-Ming, 2017. "Exploring the impacts of EU ETS on the pollution abatement costs of European airlines: An application of Network Environmental Production Function," Transport Policy, Elsevier, vol. 60(C), pages 131-142.
    11. Estelle Malavolti & Marion Podesta, 2011. "Inclusion of the aviation sector into the emission trading scheme : an economic analysis," Post-Print hal-01022239, HAL.
    12. Tiziana D'Alfonso & Changmin Jiang & Valentina Bracaglia, 2015. "Air transport and high-speed rail competition: environmental implications and mitigation strategies," DIAG Technical Reports 2015-15, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".
    13. Jiuh-Biing Sheu & Fang Li, 2014. "Market Competition and Greening Transportation of Airlines Under the Emission Trading Scheme: A Case of Duopoly Market," Transportation Science, INFORMS, vol. 48(4), pages 684-694, November.
    14. Tang, Ling & Wu, Jiaqian & Yu, Lean & Bao, Qin, 2017. "Carbon allowance auction design of China's emissions trading scheme: A multi-agent-based approach," Energy Policy, Elsevier, vol. 102(C), pages 30-40.
    15. Jenny Trinh & Fumi Harahap & Anton Fagerström & Julia Hansson, 2021. "What Are the Policy Impacts on Renewable Jet Fuel in Sweden?," Energies, MDPI, vol. 14(21), pages 1-30, November.
    16. Niu, Shih-Yuan & Liu, Chiung-Lin & Chang, Chih-Ching & Ye, Kung-Don, 2016. "What are passenger perspectives regarding airlines' environmental protection? An empirical investigation in Taiwan," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 84-91.
    17. Brueckner, Jan K. & Abreu, Chrystyane, 2017. "Airline fuel usage and carbon emissions: Determining factors," Journal of Air Transport Management, Elsevier, vol. 62(C), pages 10-17.
    18. Riccardo Colantuono & Riccardo Colantuono & Massimiliano Mazzanti & Michele Pinelli, 2023. "Aviation and the EU ETS: an overview and a data-driven approach for carbon price prediction," SEEDS Working Papers 0123, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Feb 2023.
    19. Winchester, Niven & McConnachie, Dominic & Wollersheim, Christoph & Waitz, Ian A., 2013. "Economic and emissions impacts of renewable fuel goals for aviation in the US," Transportation Research Part A: Policy and Practice, Elsevier, vol. 58(C), pages 116-128.
    20. Scheelhaase, Janina D., 2019. "How to regulate aviation's full climate impact as intended by the EU council from 2020 onwards," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 68-74.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:trapol:v:33:y:2014:i:c:p:56-64. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30473/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.