Template-type: ReDIF-Paper 1.0
Author-Name: Nava, Consuelo R.
Author-Email: cnava@unito.it
Author-Name: Meleo, Linda
Author-Email: l.meleo@uninettunouniversity.net
Author-Name: Cassetta, Ernesto
Author-Email: ernesto.cassetta@uniud.it
Author-Name: Morelli, Giovanna
Author-Email: gmorelli@unite.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: The Impact of the EU-ETS on the Aviation Sector: Competitive Effects of Abatement Efforts by Airlines.
Abstract: In the next few years, it is estimated that the aviation sector will account for more than 15% of total 
GHG emissions against the current 5%. In order to curb emissions, Directive 101/2008/EC has included the aviation
sector within the scope of the European Union Emission Trading Scheme (EU-ETS). The EU-ETS is generating additional 
costs for airline companies. The present article develops an original model with which to analyse the impact of 
EU-ETS on the aviation sector's market equilibrium. Our study expands prior research by explicitly allowing
for abatement efforts in the cost function of airline companies and by highlighting interactions among strategies 
to reduce emissions, firm's actions in the secondary market, free allowances, and fines. The results contribute to 
enhancing policy makers understanding of the impact of the EU-ETS on the aviation sector also in light of
its potential global-level extension that is currently under negotiation.
Length: pages 29
Creation-Date: 2017-03
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2017dip/wp_10_2017.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201710