Bernardo, ValeriaFageda, Xavier, 1975-Teixidó-Figueras, Jordi2024-06-182024-06-182024-01-010965-8564https://hdl.handle.net/2445/213385We 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.20 p.application/pdfengcc-by-nc (c) Bernardo et al., 2024http://creativecommons.org/licenses/by-nc/4.0/ImpostosViatges aerisCanvi climàticImpacte ambientalTaxationAir travelClimatic changeEnvironmental impactinfo:eu-repo/semantics/article7407582024-06-18info:eu-repo/semantics/openAccess