Publications

Up in the air

In this research report, SEO Amsterdam Economics forecasts the changes in prices, demand, carbon emission and leakage for flights leaving the EEA due to the EU ETS scope expansion. There is an additional increase in ticket prices and a further shift of passengers to competing non-EEA hub airports in close proximity predicted. The proposed EU ETS update lowers aviation CO2 emissions but intensifies competitive distortion and carbon leakage.