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Unilateral linking of international aviation and stationary sources within the EU emissons trading scheme
KTH, School of Architecture and the Built Environment (ABE), Real Estate and Construction Management, Building and Real Estate Economics. (Bygg- och Fastighetsekonomi)
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Starting on January 1 st, 2012, the international aviation sector will be included into the already existing EU ETS. All air crafts departing and arriving within the European Union will be obliged to hold permits corresponding to their total emissions of CO 2for those routes. Since emissions from the international aviation sector are not included under the Kyoto Protocol, the European Commission has decided to introduce a trading barrier between the sectors in order not to jeopardize the Kyoto targets. The purpose of this paper is to analyse the potential loss in cost-effectiveness of introducing such a trading barrier between two sectors taking into account that damage from emissions is not necessarily uniform. A theoretical model is developed to address the question and it is found that, at least for the case with linking the international aviation sector to the stationary sources within the EU ETS, the trading barrier might be unwarranted as it might lead to higher damage from emissions as compared to alternative ways to link the trading sectors. However, it should be stressed that this finding is not general and caution should be taken in the future when linking emission trading schemes as, depending on the heterogeneity of emission damage, a trading barrier might very well be justified.

 

 

Keyword [en]
aviation, climate change, emissions trading, gateway, policy
National Category
Other Civil Engineering Economics and Business
Identifiers
URN: urn:nbn:se:kth:diva-34029OAI: oai:DiVA.org:kth-34029DiVA: diva2:418653
Available from: 2011-05-23 Created: 2011-05-23 Last updated: 2013-10-24Bibliographically approved
In thesis
1. Including International Aviation in the EU Emissions Trading Scheme 
Open this publication in new window or tab >>Including International Aviation in the EU Emissions Trading Scheme 
2011 (English)Licentiate thesis, comprehensive summary (Other academic)
Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2011. 14 p.
Series
, Trita-FOB-LIC., 2011:4
Keyword
Aviation, Tradable Permits, Demand, Transport, Climate Change, Gateway
National Category
Other Civil Engineering Economics and Business
Identifiers
urn:nbn:se:kth:diva-33999 (URN)978-91-85783-16-8 (ISBN)
Presentation
2011-06-14, L1, KTH, Drottning Kristinas väg 30, Stockholm, 13:00
Opponent
Supervisors
Note
QC 20110523Available from: 2011-05-23 Created: 2011-05-23 Last updated: 2012-02-22Bibliographically approved
2. Essays on Regional Economics
Open this publication in new window or tab >>Essays on Regional Economics
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis is, to its nature, somewhat wide in scope. The common denominator for theincluded essays is regional economics. Within this very wide area of research, the thesis isdivided rather sharply between one part regarding trading of emission permits in theinternational aviation sector and another part concerned with real estate markets. The basis ofthis thesis is five essays all written for the purpose of peer reviewed publication.The first topic includes three essays; the first provides an overview of previous emissionstrading schemes which allow us to learn for future policy designs when including new sectorsor creating new trading schemes. The second essay aims at estimating elasticities for domesticair travel in Sweden. The third essay, takes an analytical approach to scrutinizing theproposed barrier of trade between the international aviation sector and the stationary sourceswithin the EU ETS.The second topic is motivated by the structural relocations that two municipalities in thenorthern part of Sweden are currently undergoing. The first essay on this topic, the fourthessay of this thesis, concerns redistributions of wealth that occur when moving a city center.The fifth and final essay approaches the problem of measuring an effect of information onhouse values with small quantities of data, such as is the case for Gällivare municipality.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2013. 28 p.
Series
TRITA-FOB, 2013:4
National Category
Economics and Business
Identifiers
urn:nbn:se:kth:diva-131750 (URN)978-91-85783-34-2 (ISBN)
Public defence
2013-11-14, F3, Lindstedsvägen 26, KTH, Stockholm, 13:00
Opponent
Supervisors
Note

QC 20131024

Available from: 2013-10-24 Created: 2013-10-17 Last updated: 2013-10-24Bibliographically approved

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