Impact of Carbon Taxation on Passengers of Aviation Industry

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Carbon Taxation Its Impact on Passengers of Aviation Industry Introduction Introduction of Carbon taxation by European Union stirred disturbance in the aviation industry Airlines bear it or pass the effect on the customer 2 Rationale Behind Taxation Airlines use fossil fuels responsible for the emission of: Carbon compounds Green house gases (GSGs) Resulting in hazardous impact on the environment 3 Continue-2 Air transportation is the second largest with a 13% share of transport-related greenhouse gas emissions (Kirby, 2008; pg. 35-36) 4 Impact of Economic Growth Increase in National GDPs = more demand for aviation industry Higher demands = more flights = More emission. 5 Impact of Economic Growth on Demand 6 Definition of Carbon Tax A carbon tax is a tax on the relative content of carbon in burned fossil fuels - effectively a tax on the carbon dioxide emissions from burning coal, petroleum based products and natural gas 7 Rationale for Carbon Tax To discourage use of technology which is responsible for excessive carbon emission 8 Example of High Carbon & GSG Emission 9 Arguments EU is criticized for introducing carbon tax for supporting its near bankrupt alliances 10 Arguments-2 EU states that the carbon tax is just a fraction of overall income of aviation industry and is easy to pay as the industry receives heavy subsidies Also, since the taxes will be collected by the government, so the benefits will be returned to public in

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