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The fundamentals of environmental regulation of aviation: a focus on EU emissions trading scheme 


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Abstract

Air transportation is contributing to economic prosperity, facilitating growth particularly in developing countries. The main objective of the paper is to give an overview of the fundamentals of environmental regulation of the aviation industry and provide a comprehensive analysis of the European Union Emissions Trading Scheme (EU ETS). A functional comparative analysis of the existing environmental regulations and policies in the aviation industry with reference to welfare economics literature review provides a more solid understanding of the policy differences in terms of objectives, efficiency and enforcement measures.

Keywords

sustainable aviation, environmental regulation, emissions trading scheme, aircraft emissions, climate change

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