The effect of the European Emissions Trading System (EU ETS) on aviation demand: An empirical comparison with the impact of ticket taxes

Oesingmann, Katrin

doi:10.1016/j.enpol.2021.112657

Cited by 32 publications

(4 citation statements)

References 40 publications

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“…Airlines would likely pass all costs to passengers in more competitive markets, resulting in higher fares [47]. This might cause fares to increase by €0.02 to €5.32 per passenger due to the EU Emissions Trading System (ETS) [48]. Additionally, airlines would pass fuel costs to consumers through fuel surcharges [49].…”

Section: Factors Influencing Green Consumption Behaviourmentioning

confidence: 99%

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

Hui,

Itani,

O’Connell

2024

Highlights Sustain.

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This study aims to investigate air travellers’ Willingness to Pay (WTP) for green premiums, specifically focusing on their contribution to reducing carbon emissions generated by air travel. The research integrates the Theory of Planned Behaviour (TPB) and the Contingent Valuation Method (CVM) to estimate the monetary value that air passengers would be willing to pay for environmental initiatives. The TPB provides a theoretical framework to understand the psychological factors influencing individuals’ intentions and behaviours, while the CVM allows for the estimation of the economic value of environmental goods. Drawing on the TPB, this study examines the influence of attitudes, subjective norms, and perceived behavioural control on air travellers’ WTP for green premiums, while considering the determinants and barriers related to ecological goods, and sustainable consumption. The study investigates the potential economic implications of air travellers’ willingness to pay for green premiums, particularly in the context of sustainable aviation fuel options and carbon-related fees. The findings of the survey of a sample of 248 respondents suggest a general willingness among passengers to pay for environmental premiums, notably carbon taxes, with variations in WTP influenced by demographics, travel preferences, environmental values, and awareness. Notably, younger travellers exhibit the highest WTP which is negatively related to the air ticket price. Higher environmental consciousness correlates with greater WTP. The impact of price perception and perceived efficacy of environmental initiatives were also found significant. Financial constraints and scepticism about the credibility of such premiums, however, limit some passengers’ willingness to contribute.

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Section: Factors Influencing Green Consumption Behaviourmentioning

confidence: 99%

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

Hui,

Itani,

O’Connell

2024

Highlights Sustain.

View full text Add to dashboard Cite

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“…The carbon trading system is considered to be the most effective incentive mechanism [23]. As the first platform to regulate and commercialize carbon emissions in commercial aviation [24], the EU-ETS has become a standard model for carbon trading systems in other countries and regions [25].…”

Section: Carbon Emission Trading Processmentioning

confidence: 99%

A Time-and-Space-Network-Based Green Fleet Planning Model and Its Application for a Hub-and-Spoke Network

et al. 2023

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Most previous studies on airline fleet planning have focused solely on economic considerations, neglecting the impact of carbon reduction. This paper presents a novel method for green fleet planning, using a bi-level programming model to balance conflicts among stakeholders while considering uncertain parameters such as demand and operating costs. The upper model aims to reduce carbon emissions by taking into account government constraints, such as carbon allowances and carbon prices, as well as airline satisfaction. The lower model seeks to maximize airline revenue using a space-and-time network model based on given airline flight schedules. To verify the game model, a case study utilizing randomly generated scenarios is employed within the context of China’s aviation-specific emissions trading scheme. Results show that: (1) compared to the scenario without a policy aiming at reducing carbon emissions, this method reduces carbon emissions by 23.03% at the expense of a 6.96% reduction in terms of the airline’s operating profit; (2) when passenger demand levels increase to 160%, the profitability of the proposed fleet increases by 50.83%, while there were only insignificant changes in carbon emissions; (3) the proposed methodology can assist the airlines systematically to reduce carbon emissions and provide valuable strategic guidance for policy makers.

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“…These two characteristics offer exceptional technological support for validating and monitoring carbon trading data (Wen et al 2021). Blockchain is a network system of peer-to-peer (P2P) value exchange (Mougayar 2016), enabling firms to conduct transactions directly without needing middlemen. This strategy simplifies and expedites the transaction process and eliminates the need for costly intermediaries.…”

Section: Introductionmentioning

confidence: 99%

Cooperative management of an emission trading system: a private governance and learned auction for a blockchain approach

Wang,

Ma,

Ren

et al. 2023

Financ Innov

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Although blockchain technology has received a significant amount of cutting-edge research on constructing a novel carbon trade market in theory, there is little research on using blockchain in carbon emission trading schemes (ETS). This study intends to address existing gaps in the literature by creating and simulating an ETS system based on blockchain technology. Using the ciphertext-policy attributed-based encryption algorithm and the Fabric network to build a platform may optimize the amount of data available while maintaining privacy security. Considering the augmentation of information interaction during the auction process brought about by blockchain, the learning behavior of bidding firms is introduced to investigate the impact of blockchain on ETS auction. In particular, implementing smart contracts can provide a swift and automatic settlement. The simulation results of the proposed system demonstrate the following: (1) fine-grained access is possible with a second delay; (2) the average annual compliance levels increase by 2% when bidders’ learning behavior is considered; and (3) the blockchain network can process more than 350 reading operations or 7 writing operations in a second.

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The effect of the European Emissions Trading System (EU ETS) on aviation demand: An empirical comparison with the impact of ticket taxes

Cited by 32 publications

References 40 publications

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

Examining Air Travellers’ Willingness to Pay for Non-voluntary Environment-related Fees: The Case of SAF Surcharge and Carbon Taxes

A Time-and-Space-Network-Based Green Fleet Planning Model and Its Application for a Hub-and-Spoke Network

Cooperative management of an emission trading system: a private governance and learned auction for a blockchain approach

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