Flight ticket taxes in Europe: Environmental and economic impact

We examine the causal impact of flight ticket taxes on airline flights and derived CO2 emissions and analyse its distributional effects between airlines and travellers and within travellers. We use a dataset on flights within Europe at the airline-route level and apply a staggered difference-in-diff...

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Autores: Bernardo, Valeria, Fageda, Xavier, 1975-, Teixidó-Figueras, Jordi
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2024
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/213385
Acceso en línea:https://hdl.handle.net/2445/213385
Access Level:acceso abierto
Palabra clave:Impostos
Viatges aeris
Canvi climàtic
Impacte ambiental
Taxation
Air travel
Climatic change
Environmental impact
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spelling Flight ticket taxes in Europe: Environmental and economic impactBernardo, ValeriaFageda, Xavier, 1975-Teixidó-Figueras, JordiImpostosViatges aerisCanvi climàticImpacte ambientalTaxationAir travelClimatic changeEnvironmental impactWe examine the causal impact of flight ticket taxes on airline flights and derived CO2 emissions and analyse its distributional effects between airlines and travellers and within travellers. We use a dataset on flights within Europe at the airline-route level and apply a staggered difference-in-differences approach considering potential bias of the standard two-way fixed effects and the potential distorting effects of heterogeneities between treated and control routes. The main analysis focuses on low-cost airlines because connecting passengers are typically excluded from the tax. We find that flight ticket taxes have a significant overall effect on low-costs airlines supply and derived emissions: ticket taxes reduce the number of flights per airline-route by 12% on average compared to the counterfactual scenario, resulting in a 14% reduction in carbon emissions. In addition, we estimate a pricing equation using a quantile model to identify the cost pass-through rate over the distribution of the fare variable. The burden of the tax is higher for passengers paying low fares, so taxes have a stronger effect on avoidable flights with less added value and a smaller internalization of the total costs of flying.Elsevier Ltd2024info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://hdl.handle.net/2445/213385Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésReproducció del document publicat a: https://doi.org/10.1016/j.tra.2023.103892Transportation Research Part A: Policy and Practice, 2024, vol. 179, núm. 103892https://doi.org/10.1016/j.tra.2023.103892cc-by-nc (c) Bernardo et al., 2024http://creativecommons.org/licenses/by-nc/4.0/info:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/2133852026-05-27T06:46:51Z
dc.title.none.fl_str_mv Flight ticket taxes in Europe: Environmental and economic impact
title Flight ticket taxes in Europe: Environmental and economic impact
spellingShingle Flight ticket taxes in Europe: Environmental and economic impact
Bernardo, Valeria
Impostos
Viatges aeris
Canvi climàtic
Impacte ambiental
Taxation
Air travel
Climatic change
Environmental impact
title_short Flight ticket taxes in Europe: Environmental and economic impact
title_full Flight ticket taxes in Europe: Environmental and economic impact
title_fullStr Flight ticket taxes in Europe: Environmental and economic impact
title_full_unstemmed Flight ticket taxes in Europe: Environmental and economic impact
title_sort Flight ticket taxes in Europe: Environmental and economic impact
dc.creator.none.fl_str_mv Bernardo, Valeria
Fageda, Xavier, 1975-
Teixidó-Figueras, Jordi
author Bernardo, Valeria
author_facet Bernardo, Valeria
Fageda, Xavier, 1975-
Teixidó-Figueras, Jordi
author_role author
author2 Fageda, Xavier, 1975-
Teixidó-Figueras, Jordi
author2_role author
author
dc.subject.none.fl_str_mv Impostos
Viatges aeris
Canvi climàtic
Impacte ambiental
Taxation
Air travel
Climatic change
Environmental impact
topic Impostos
Viatges aeris
Canvi climàtic
Impacte ambiental
Taxation
Air travel
Climatic change
Environmental impact
description We examine the causal impact of flight ticket taxes on airline flights and derived CO2 emissions and analyse its distributional effects between airlines and travellers and within travellers. We use a dataset on flights within Europe at the airline-route level and apply a staggered difference-in-differences approach considering potential bias of the standard two-way fixed effects and the potential distorting effects of heterogeneities between treated and control routes. The main analysis focuses on low-cost airlines because connecting passengers are typically excluded from the tax. We find that flight ticket taxes have a significant overall effect on low-costs airlines supply and derived emissions: ticket taxes reduce the number of flights per airline-route by 12% on average compared to the counterfactual scenario, resulting in a 14% reduction in carbon emissions. In addition, we estimate a pricing equation using a quantile model to identify the cost pass-through rate over the distribution of the fare variable. The burden of the tax is higher for passengers paying low fares, so taxes have a stronger effect on avoidable flights with less added value and a smaller internalization of the total costs of flying.
publishDate 2024
dc.date.none.fl_str_mv 2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/213385
url https://hdl.handle.net/2445/213385
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Reproducció del document publicat a: https://doi.org/10.1016/j.tra.2023.103892
Transportation Research Part A: Policy and Practice, 2024, vol. 179, núm. 103892
https://doi.org/10.1016/j.tra.2023.103892
dc.rights.none.fl_str_mv cc-by-nc (c) Bernardo et al., 2024
http://creativecommons.org/licenses/by-nc/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv cc-by-nc (c) Bernardo et al., 2024
http://creativecommons.org/licenses/by-nc/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Elsevier Ltd
publisher.none.fl_str_mv Elsevier Ltd
dc.source.none.fl_str_mv Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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