International and National Political Regulations of Aviation’s Climate Impact and Cost Impacts on Air Freight

Abstract

This chapter provides an overview of the current political regulations on aviation's climate relevant emissions in Europe, Australia, and New Zealand and of the planned regulations in other parts of the world. In a next step, the cost impacts of most of these regulations on air freight will be quantified. This way, the economic impacts of environmental regulations on air freight can be estimated.The main results indicate that cost impacts on air freight services induced by political measures for the reduction of aviation's climate relevant emissions turn out to be small. This is true for both local emission charges on nitrous oxide (NO X ) and hydrocarbon (HC) emissions which are in force at a number of European airports and the European emissions trading scheme for the limitation of CO 2 emissions.