Environmental externalities in air transport markets

Environmental externalities in air transport markets

Journal: Air Transport Management

Author: Youdi Schipper


, Piet Rietveld

, Peter Nijkamp

Published: 2001

Abstract

This paper reviews the problem of environmental externalities in air transportation. Several types of externalities in aviation are discussed and their empirical relevance is assessed. Next, it is argued that economic evaluation of environmental e!ects is essential in order to arrive at an e$cient solution to the problem of externalities. An evaluation framework is presented, containing the cause-e!ect relations between air transport output and environmental degradation, as well as the monetary valuation of the environmental goods a!ected.

Keywords: Aviation; Environment; Externalities

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