A significant volume of literature already exists concerning the inclusion of aviation in the EU-ETS. Most of the research laid its focus on specific industry levels such as the individual airline, the aviation industry in general or macroeconomic aspects. In this context, these studies tried to anticipate market reactions triggered by the EU-ETS by analyzing specific issues such as the financial impact on airlines, changes in competitive behavior or implications for the overall industry development. As a consequence, the existing studies took only a limited market view and made assumptions about expected developments in specific fields of the aviation industry. However, at the time of writing this thesis, conclusions about the scope of impact could hardly be drawn from existing impact assessments because of the wide range of issues that exceeded the scope of most impact studies. Hence, a broader research approach is needed which takes different analytical perspectives to describe the scope of impact of the EU-ETS and depict potential effects for the aviation industry.

Master's Thesis from the year 2013 in the subject Business economics - Operations Research, grade: 2,3, University of Cologne, language: English, abstract: A significant volume of literature already exists concerning the inclusion of aviation in the EU-ETS. Most of the research laid its focus on specific industry levels such as the individual airline, the aviation industry in general or macroeconomic aspects. In this context, these studies tried to anticipate market reactions triggered by the EU-ETS by analyzing specific issues such as the financial impact on airlines, changes in competitive behavior or implications for the overall industry development. As a consequence, the existing studies took only a limited market view and made assumptions about expected developments in specific fields of the aviation industry. However, at the time of writing this thesis, conclusions about the scope of impact could hardly be drawn from existing impact assessments because of the wide range of issues that exceeded the scope of most impact studies. Hence, a broader research approach is needed which takes different analytical perspectives to describe the scope of impact of the EU-ETS and depict potential effects for the aviation industry.

Introduced in January 2005, the EU Emissions Trading Scheme (ETS) is the worlds first large-scale greenhouse-gas trading programme. The scheme covers all 25 EU Member States and aims to help member states achieve compliance with their commitments under the Kyoto Protocol. The EU Environment Council in December 2005 agreed that the inclusion of the aviation sector in the ETS was the best way forward on aviation emissions compared to other policy initiatives, and urged the Commission to bring forward a legislative proposal by the end of 2006. The Committees report considers a range of issues including: current and projected levels of air traffic and its environmental effects; policy sustainability on environmental and economic grounds; determining geographical scope and the limits for inclusion of flights and airlines, allocation methods and trading entities; the impact on air fares and air freight charges; and alternative policy options including fuel taxes; carbon offset schemes and investment in new technologies.

"In its attempt to further mitigate global climate change, the European Union recently included aviation activity into its carbon emissions trading scheme (the 'EU ETS'). This thesis examines the impact of the inclusion of aviation into the EU ETS on Caribbean island states and, additionally, offers recommendation on how these Caribbean island states can deal with the issues that are expected to arise from the inclusion of aviation into the EU ETS. By firstly determining the deficiencies in the EU ETS relevant to Caribbean island states as compared to the UNFCCC and Kyoto Protocol and, secondly, analyzing the legal and economic impact of the inclusion of aviation into the EU ETS on both airlines worldwide as well as Caribbean island states, this thesis finds that there is great uncertainty in the airline industry on the impact of the inclusion of aviation into the EU ETS. Nevertheless, the current EU ETS regime was not anticipated to have a significantly detrimental impact on the Caribbean economy. However, any reduction in the numbers of tourist arrivals and expenditures is economically disadvantageous to the Caribbean island states. Therefore, Caribbean island states should create a stronger and more independent position for themselves within the global climate change framework of the UNFCCC by having all 31 Caribbean island states become party to the UNFCCC and Kyoto Protocol and by working together to create a regional Caribbean ETS." --

In February 2009, the European Union Directive 2008/101/EC was approved, clarifying how emissions from the aviation sector will be included in the European Union Emissions Trading Scheme (EU ETS). According to this directive, starting from 1st January 2012, all aircraft operators (nearly 4000), flying to or from any airport in EU territory will be included in EU ETS. This dissertation aims to provide qualitative and quantitative information about the consequences for aviation industry to be included in European Union Emissions Trading Scheme (EU ETS) for the first trading period (2012). In this study, with empirical data, a scenario approach has also been used to quantify the potential 2012 CO2 emissions from aviation industry. So that, a scale of the possible total financial burden that aviation sector will be under for their CO2 emissions in the first trading period of EU ETS (2012) is calculated. According to the calculations, 2012 CO2 emissions of the flights covered under EU ETS can vary from 231.242 million tonne of CO2 to 277.036 million tonne of CO2 and the cost of 2012 CO2 emissions for the aviation sector can be between 967.47 million Euro and 2.54 billion Euro.

This book analyses the political, economic and managerial challenges for policy makers and the air transport industry as they face climate change. Based on an overview of the scientific background and technological options for emissions reduction, Aviation and Climate Change provides an in-depth assessment of environmental regulation and management. It provides an up-to-the-minute analysis of the effects of aviation on climate change, and an economic analysis of policies to reduce or eliminate greenhouse gas emissions. The main emphasis of the book is on the economic mechanisms used to lessen emissions – carbon taxes, emissions trading schemes and offset schemes. It pays particular attention to the ways these policies work, and to the interaction between them – for instance, the interaction between taxes and emissions trading schemes. One feature of the book is that it analyses the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) which has been developed by ICAO for international aviation, and which is due to commence operation shortly. The advantages and disadvantages of this controversial scheme are discussed. This book will be of interest to researchers in diverse areas (economics, political science, engineering, natural sciences), to air transport policy makers, and to managers in the aviation industry.

Bachelor Thesis from the year 2012 in the subject Business economics - Miscellaneous, grade: 1.3, European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Aviation Management), language: English, abstract: The introduction of an emission trading system within the European Union from 2012 on represents a major financial barrier for all airlines, especially those operating their hubs inside the EU. While the plan is to request all airlines flying in the EU to buy emission certificates, most non-European carriers could still benefit from the international disputes going on at the moment. European-based airlines in turn fear a disadvantage against their non-european competitors, as the need for emission certificates will burden their already high cost structures even further. The paper should first explain the concept of emission trading schemes as well as the current plan of introducing emission trading in the European Union. The second part will then elaborate on the airline’s perspective on emission trading and the included risks/ disadvantages originating from an introduction of such a system. A third part will then analyze the correlation between announcements concerning the emission trading system and the performance of airline stock prices. The analysis shall be based on the stock performance of major European airlines, as they will be the ones facing major discrimination if the system gets introduced. Finally, the usefulness of an emission trading system is going to be discussed and alternatives to solve the climate change issue will be presented.