Scenarios for future policies – potential costs and competitive impacts of different market-based measures for the limitation of all climate relevant species from aviation

Climate relevant emissions from air transport are CO₂, H₂O, NO_x, SO_x, soot, contrails and triggered contrail cirrus. This chapter presents selected economic results of AviClim. It provides an overview of AviClim’s selected results on the costs and competition impacts of the market-based measures climate tax and emission trading for all climate relevant species. Since the possible introduction of market-based measures for the limitation of aviation’s climate relevant emissions has been a controversial issue on the international level, different geopolitical scenarios have been designed within AviClim. As total costs probably will be distributed differently within the airline sector, competitive distortions may be caused by the climate protecting measures. The climate tax has been calculated for all flights and airlines under the respective reduction scenario on a flight-by-flight-basis.