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Sustainability-oriented tax-based own resources for the European Union: a European carbon-based flight ticket tax

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  • Alexander Krenek

    (Austrian Institute of Economic Research)

  • Margit Schratzenstaller

    (Austrian Institute of Economic Research)

Abstract

The failed attempts of several European countries to introduce a flight ticket tax and the pressure on those European Union Member States still levying such a tax clearly demonstrate the limits of national aviation taxation. Assigning a carbon-based flight ticket tax to the EU level would reduce the tax enforcement problems inherent to mobile tax bases and put a stop to harmful tax competition between EU Member States. By replacing a part of national contributions to the EU budget a flight ticket tax can strengthen sustainability-orientation of the EU system of own resources. Using a new data set, which assigns to approximately 75 to 90% of the respective intra and extra EU routes flown in the year 2014 the corresponding carbon emissions per passenger, the paper estimates the expected revenue from implementing a carbon-based flight ticket tax at the EU level for carbon tax levels between 25 and 35€ per ton of carbon emissions.

Suggested Citation

  • Alexander Krenek & Margit Schratzenstaller, 2017. "Sustainability-oriented tax-based own resources for the European Union: a European carbon-based flight ticket tax," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(4), pages 665-686, November.
    • Handle: RePEc:kap:empiri:v:44:y:2017:i:4:d:10.1007_s10663-017-9381-7
    DOI: 10.1007/s10663-017-9381-7
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    1. Julia Bachtrögler-Unger & Margit Schratzenstaller & Franz Sinabell, 2021. "Der europäische COVID-19-Aufbauplan," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(4), pages 321-332, April.
    2. Julia Bachtrögler-Unger & Angela Köppl & Atanas Pekanov & Margit Schratzenstaller-Altzinger & Franz Sinabell, 2019. "Das EU-Budget 2021 bis 2027 – Optionen für eine Stärkung des europäischen Mehrwerts," WIFO Working Papers 592, WIFO.
    3. Wifo, 2021. "WIFO-Monatsberichte, Heft 4/2021," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(4), April.
    4. Borbely, Daniel, 2019. "A case study on Germany’s aviation tax using the synthetic control approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 126(C), pages 377-395.
    5. Mohamed Ali Kammoun & Sadok Turki & Nidhal Rezg, 2020. "Optimization of Flight Rescheduling Problem under Carbon Tax," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    6. Veronika Solilová & Danuše Nerudová & Marian Dobranschi, 2017. "Sustainability-oriented future EU funding: a financial transaction tax," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(4), pages 687-731, November.
    7. Julia Bachtrögler-Unger & Margit Schratzenstaller & Franz Sinabell, 2021. "Der europäische COVID-19-Aufbauplan," WIFO Monatsberichte (monthly reports), WIFO, vol. 94(4), pages 321-334, April.
    8. Marie Lisa Kapeller & Manfred Füllsack & Georg Jäger, 2019. "Holiday Travel Behaviour and Correlated CO 2 Emissions—Modelling Trend and Future Scenarios for Austrian Tourists," Sustainability, MDPI, vol. 11(22), pages 1-25, November.
    9. Carroll, James & Brazil, William & Howard, Michael & Denny, Eleanor, 2022. "Imperfect emissions information during flight choices and the role of CO2 labelling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    10. Margit Schratzenstaller-Altzinger, 2020. "Reformbedarf und Reformoptionen für das EU-Budget aus österreichischer Perspektive," WIFO Monatsberichte (monthly reports), WIFO, vol. 93(3), pages 177-191, March.
    11. Yurii Hrinchenko, 2020. "The Ecosystem Approach to the Aviation Industry Development Policy," Journal of Applied Management and Investments, Department of Business Administration and Corporate Security, International Humanitarian University, vol. 9(2), pages 71-84, June.
    12. Schratzenstaller Margit, 2023. "Elements of a European Green Fiscal Policy," Intereconomics: Review of European Economic Policy, Sciendo, vol. 58(6), pages 300-304, December.
    13. Helmers, Viola & van der Werf, Edwin, 2022. "Did the German Aviation Tax Affect Passenger Numbers? New Evidence Employing Difference-in-differences," VfS Annual Conference 2022 (Basel): Big Data in Economics 264118, Verein für Socialpolitik / German Economic Association.
    14. Atanas Pekanov & Margit Schratzenstaller-Altzinger, 2019. "A Global Financial Transaction Tax. Theory, Practice and Potential Revenues," WIFO Working Papers 582, WIFO.

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