Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/213385
Title: Flight ticket taxes in Europe: Environmental and economic impact
Author: Bernardo, Valeria
Fageda, Xavier, 1975-
Teixidó-Figueras, Jordi
Keywords: Impostos
Viatges aeris
Canvi climàtic
Impacte ambiental
Taxation
Air travel
Climatic change
Environmental impact
Issue Date: 1-Jan-2024
Publisher: Elsevier Ltd
Abstract: 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.
Note: Reproducció del document publicat a: https://doi.org/10.1016/j.tra.2023.103892
It is part of: Transportation Research Part A: Policy and Practice, 2024, vol. 179, núm. 103892
URI: https://hdl.handle.net/2445/213385
Related resource: https://doi.org/10.1016/j.tra.2023.103892
ISSN: 0965-8564
Appears in Collections:Articles publicats en revistes (Econometria, Estadística i Economia Aplicada)

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