The impact of the European Union Emissions Trading Scheme on US aviation
Name
Malina et al EU ETS manuscript (1).pdf
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221.55 KB
Format
Adobe PDF
Checksum (MD5)
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Author(s)
Malina, Robert
McConnachie, Dominic
Winchester, Niven Stewart
Wollersheim, Christoph
Paltsev, Sergey
Waitz, Ian A
Date Issued
December 2011
Journal
Journal of Air Transport Management
Publisher
Elsevier B.V.
Citation
Malina, Robert, Dominic McConnachie, Niven Winchester, Christoph Wollersheim, Sergey Paltsev, and Ian A. Waitz. "The impact of the European Union Emissions Trading Scheme on US aviation." Journal of Air Transport Management, Volume 19, March 2012, p.36–41.
Version
Author's final manuscript
Abstract
We estimate the economic impacts on US airlines that may arise from the inclusion of aviation in the European Union Emissions Trading Scheme from 2012 to 2020. We find that the Scheme would only have a small impact on US airlines and emissions, and that aviation operations would continue to grow. If carriers pass on all additional costs, including the opportunity costs associated with free allowances, to consumers, profits for US carriers will increase. Windfall gains from free allowances may be substantial because, under current allocation rules, airlines would only have to purchase about a third of the required allowances. However, an increase in the proportion of allowances auctioned would reduce windfall gains and profits for US airlines may decline.
MIT Department
Massachusetts Institute of Technology. Department of Aeronautics and Astronautics
Massachusetts Institute of Technology. Joint Program on the Science & Policy of Global Change
Massachusetts Institute of Technology. School of Engineering
MIT Energy Initiative
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Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1016/j.jairtraman.2011.12.004
