Economic and Environmental Effects of the Introduction of a Cap and Trade Policy in Aviation

Project 31 analyzed the effects of a potential introduction of a cap-and-trade policy in the aviation industry. Analyses were conducted through the joint application of the Aviation Environmental Portfolio Management Tool, in particular the APMT Economics module, and a global model of economic growth and greenhouse gas emissions, the MIT Emissions Prediction and Policy Analysis (EPPA) model. Where the EPPA model's outputs provide information on the world economy, changes of greenhouse gas emissions and the expected cost of carbon, APMT Economics focused on the airline industry, and provided outputs such as operating costs of airlines, demand, or airline fleets. While the project focused initially on the implications of a cap-and-trade policy, the tools enabled the study of a variety of other mitigation options -- for example, the extent to which mandates for renewable fuels in one sector can influence price and availability in other sectors, or the relative economic efficiency of sector-based regulations and standards versus broader economy-wide measures.

• Record URL:
  http://partner.mit.edu/projects/understanding-relationship-between-aviation-economics-and-broader-economy
• Supplemental Notes:
  • Program Information: Centers of Excellence, Aircraft Noise and Aviation Emissions Mitigation

Language

• English

Project

• Status: Completed
• Funding: $399722.00
• Contract Numbers:

  06-C-NE-MIT-028

• Sponsor Organizations:

  Federal Aviation Administration

  800 Independence Avenue, SW
  Washington, DC  United States  20591
• Project Managers:

  Cuddy, Thomas

• Performing Organizations:

  Massachusetts Institute of Technology

  77 Massachusetts Avenue
  Cambridge, MA  United States  02139
• Principal Investigators:

  Waltz, Ian

• Start Date: 20090708
• Expected Completion Date: 0
• Actual Completion Date: 20110831
• Source Data: RiP Project 30274

Subject/Index Terms

• TRT Terms: Aviation; Economic factors; Environmental impacts; Operating costs; Policy; Pollutants
• Uncontrolled Terms: Cap and trade program
• Subject Areas: Aviation; Economics; I15: Environment;

Filing Info

• Accession Number: 01570227
• Record Type: Research project
• Source Agency: Department of Transportation
• Contract Numbers: 06-C-NE-MIT-028
• Files: RIP
• Created Date: Jul 21 2015 1:00AM