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Unilateral regulation and greenhouse gas emissions: The case of the Airline Industry

► We examine the effects of unilateral GHG emissions regulation in airline industry. ► The regulation has more negative impact on home airline than foreign airline. ► Thus the unilateral action may confer a competitive advantage to foreign airline. ► Unilateral regulation might lead to an increase i...

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Bibliographic Details
Published in:Transportation research. Part D, Transport and environment Transport and environment, 2011-10, Vol.16 (7), p.540-546
Main Authors: Yuen, Andrew C.L., Zhang, Anming
Format: Article
Language:English
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Summary:► We examine the effects of unilateral GHG emissions regulation in airline industry. ► The regulation has more negative impact on home airline than foreign airline. ► Thus the unilateral action may confer a competitive advantage to foreign airline. ► Unilateral regulation might lead to an increase in global GHG emissions. This paper provides an analytical framework for investigating the effects of unilateral measures to control greenhouse gas emitted by the aviation industry. It is found that, unilateral efforts might lead to an increase in global greenhouse gas emissions. Furthermore, emissions taxes implemented as part of such measures could lead to larger negative impacts on home than on foreign airlines, possibly resulting in competitive issues.
ISSN:1361-9209
1879-2340
DOI:10.1016/j.trd.2011.06.006