Title: Coasian economics and the management of international aviation emissions

Authors: David Timothy Duval

Addresses: School of Business, University of Otago, New Zealand

Abstract: The recent decision by the EU Parliament supporting an emissions tax and subsequent carbon trading scheme for European airlines provides the structural foundation for an exploration of the role of Coasian economics in emissions abatements in the international aviation industry. The paper begins by outlining Pigouvian taxation in aviation and considers, from a business context, the potential reaction of international air transport operations. It is argued that the tenets underlying Coasian approaches to negotiated or bargained optimum pollution levels is an alterative lens through which emissions controls can be viewed, although such an approach is perhaps not entirely efficient due to the presence of significant transaction costs, complex regulatory environments governing access.

Keywords: aviation; aircraft emissions; Coase; economics; greenhouse gases; property rights; Coasian economics; climate change; taxation; air transport; emissions control.

DOI: 10.1504/IJISD.2006.012422

International Journal of Innovation and Sustainable Development, 2006 Vol.1 No.3, pp.201 - 213

Published online: 12 Feb 2007 *

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