Scandinavian Working Papers in Economics

Working Papers,
Swedish National Road & Transport Research Institute (VTI)

No 2009:14: Aviation and the EU ETS - Lessons learned from previous emissions trading schemes

Fredrik Kopsch ()
Additional contact information
Fredrik Kopsch: Swedish National Road and Transport Research Institute, Postal: Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden

Abstract:

Designing an emissions trading scheme requires in-depth knowledge about several aspects. This paper attempts to clarify some important design points of the forthcoming emissions trading scheme for aviation under the EU ETS. Five general key points of system design are acknowledged and comparisons are made to previous and current emission trading schemes. Above all, it is argued that initial allocations of emission permits and the trade barrier between the aviation sector and EU ETS need to be carefully examined.

Keywords: Aviation; Tradable permits; System design; Policy

JEL-codes: L51; P48; Q52; Q53; Q58

28 pages, December 1, 2009

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Aviation_EUETS.pdf PDF-file 

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