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European Climate Policy and Aviation Emissions

Author

Listed:
  • Karen Mayor

    (Economic and Social Research Institute (ESRI))

  • Richard S. J. Tol

    (Economic and Social Research Institute (ESRI))

Abstract

We use a model of international and domestic tourist numbers and flows to investigate the effect of various climate policy instruments implemented in Europe on arrivals and emissions for the countries concerned. We find that these schemes do not fulfil their desired effects. The introduction of aviation into the European Trading system results in a fall in the number of tourists travelling into the EU in favour of other destinations. It also causes a significant welfare loss with only a small reduction in emissions. The flight taxes in the Netherlands and the United Kingdom result in different substitution effects across destinations (depending on the zones being taxed) but both policies do have the same consequence of inducing welfare losses and also reducing visitor numbers to the countries. We find that when these policies are combined their effects are additive. Welfare impacts are robust to variations in the underlying assumptions and changes in the scope of the taxes examined have the expected effects.

Suggested Citation

  • Karen Mayor & Richard S. J. Tol, 2008. "European Climate Policy and Aviation Emissions," Papers WP241, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp241
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    File URL: https://www.esri.ie/pubs/WP241.pdf
    File Function: First version, 2008
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    References listed on IDEAS

    as
    1. Jacqueline M. Hamilton & Richard S.J. Tol, 2006. "The Impact of Climate Change on Tourism in Germany, The UK and Ireland: A Simulation Study," Papers WP174, Economic and Social Research Institute (ESRI).
    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. Jacqueline M. Hamilton & David J. Maddison & Richard S.J. Tol, 2003. "Climate Change And International Tourism: A Simulation Study," Working Papers FNU-31, Research unit Sustainability and Global Change, Hamburg University, revised Sep 2003.
    4. John FitzGerald & Richard S. J. Tol, 2007. "Airline emissions of carbon dioxide in the European trading system," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(01), pages 51-54, April.
    5. Richard S.J. Tol, 2006. "The Impact of a Carbon Tax on International Tourism," Papers WP177, Economic and Social Research Institute (ESRI).
    6. Andrea Bigano & Jacqueline M. Hamilton & Maren A. Lau & Richard S.J. Tol & Zhou Yuan, 2004. "A Global Database Of Domestic And International Tourist Numbers At National And Subnational Level," Working Papers FNU-54, Research unit Sustainability and Global Change, Hamburg University, revised Nov 2004.
    7. 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.
    8. Witt, Stephen F. & Witt, Christine A., 1995. "Forecasting tourism demand: A review of empirical research," International Journal of Forecasting, Elsevier, vol. 11(3), pages 447-475, September.
    9. Mayor, Karen & Tol, Richard S.J., 2008. "The impact of the EU–US Open Skies agreement on international travel and carbon dioxide emissions," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 1-7.
    10. Karen Mayor & Richard S.J. Tol, 2007. "The Impact of the EU-US Open Skies Agreement on International Travel and Carbon Dioxide Emissions," Papers WP191, Economic and Social Research Institute (ESRI).
    11. Wohlgemuth, Norbert, 1997. "World transport energy demand modelling : Methodology and elasticities," Energy Policy, Elsevier, vol. 25(14-15), pages 1109-1119, December.
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    Cited by:

    1. Jiali Zheng & Han Qiao & Shouyang Wang, 2017. "The Effect of Carbon Tax in Aviation Industry on the Multilateral Simulation Game," Sustainability, MDPI, vol. 9(7), pages 1-24, July.

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    Keywords

    Climate policy; carbon dioxide emissions; international tourism;
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