Market-Based Instruments for International Aviation and Shipping as a Source of Climate Finance

Keen, Michael; Parry, Ian; Strand, Jon

dc.creator	Keen, Michael
dc.creator	Parry, Ian
dc.creator	Strand, Jon
dc.date	2012-03-19T17:28:49Z
dc.date	2012-03-19T17:28:49Z
dc.date	2012-01-01
dc.date.accessioned	2023-02-17T20:49:34Z
dc.date.available	2023-02-17T20:49:34Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120117140509
dc.identifier	http://hdl.handle.net/10986/3235
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/243612
dc.description	The international aviation and maritime sectors today enjoy relatively favorable tax treatment, as their fuels are not taxed and the sectors are not subject to any value-added tax or turnover tax. Nor are these fuel uses subject to any global measures to reduce their associated CO2 emissions, even though they represent at least 5 percent of the global greenhouse gas emissions. A carbon charge on fuels for international aviation and shipping equal to $25 per tonne of emitted CO2 could raise about $12 billion from aviation and about $26 billion from shipping by 2020. Market-based instruments ought to be used to raise such revenue, preferably charges based on the carbon contents of fuels. Such charges would also scale back emissions by at least 5-10 percent. Developing countries ought to be able to keep their own tax revenue, and additional compensation to them for the economic burdens of these carbon charges may be warranted. Such compensation would constitute at most 40 percent of the raised global revenue. Implementing these charges can be a challenge, especially for aviation, where a large number of bilateral air-service agreements would need to be rewritten.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5950
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	AIR
dc.subject	AIR CARGO
dc.subject	AIR NAVIGATION
dc.subject	AIR POLLUTION
dc.subject	AIR SERVICE
dc.subject	AIR TICKETS
dc.subject	AIR TRAFFIC
dc.subject	AIR TRAFFIC CONTROL
dc.subject	AIR TRANSPORT
dc.subject	AIRCRAFT
dc.subject	AIRLINE COMPANIES
dc.subject	AIRLINE TICKET
dc.subject	AIRPORT
dc.subject	AIRPORT CONGESTION
dc.subject	AIRPORT SECURITY
dc.subject	AIRPORT TAXES
dc.subject	AIRPORTS
dc.subject	ALLOCATION
dc.subject	ALLOWANCE
dc.subject	ALTERNATIVE FUELS
dc.subject	ALTITUDE
dc.subject	ANNUAL EMISSION
dc.subject	ANNUAL EMISSION REDUCTIONS
dc.subject	APPROACH
dc.subject	AUTOMOBILE
dc.subject	AVERAGE COSTS
dc.subject	AVIATION EMISSIONS
dc.subject	AVIATION FUEL
dc.subject	AVIATION INDUSTRY
dc.subject	AVIATION SECTOR
dc.subject	BASELINE EMISSIONS
dc.subject	BASELINE LEVELS
dc.subject	BASES
dc.subject	BIO-DIESEL
dc.subject	CALORIFIC VALUE
dc.subject	CAPITAL GAINS
dc.subject	CARBON
dc.subject	CARBON CONTENT
dc.subject	CARBON EMISSIONS
dc.subject	CARBON LEAKAGE
dc.subject	CARBON PRICE
dc.subject	CARBON TAXES
dc.subject	CARRIERS
dc.subject	CARS
dc.subject	CIRRUS CLOUDS
dc.subject	CLEAN TECHNOLOGY
dc.subject	CLIMATE
dc.subject	CLIMATE CHANGE
dc.subject	CLIMATE STABILIZATION
dc.subject	CO
dc.subject	CO2
dc.subject	COATINGS
dc.subject	COMBUSTION
dc.subject	COMPLETE LISTING
dc.subject	CONGESTION
dc.subject	CONGESTION PROBLEMS
dc.subject	CONSUMER PRICE
dc.subject	CONSUMER SURPLUS
dc.subject	CRUDE OIL
dc.subject	CRUDE OIL PRICE
dc.subject	DEMAND CURVE
dc.subject	DEMAND ELASTICITY
dc.subject	DEMAND FOR TRANSPORTATION
dc.subject	DEMAND FOR TRAVEL
dc.subject	DEVELOPED COUNTRIES
dc.subject	DIESEL
dc.subject	DIESEL ENGINES
dc.subject	DIESEL FUEL
dc.subject	DOMESTIC AIR TRAVEL
dc.subject	DOMESTIC AVIATION
dc.subject	DOMESTIC FLIGHTS
dc.subject	ECONOMIC ANALYSIS
dc.subject	ECONOMIC WELFARE
dc.subject	EFFICIENCY IMPROVEMENTS
dc.subject	ELASTICITIES
dc.subject	ELASTICITIES OF DEMAND
dc.subject	ELASTICITY OF DEMAND
dc.subject	EMISSION
dc.subject	EMISSION REDUCTIONS
dc.subject	EMISSION TRADING
dc.subject	EMISSIONS
dc.subject	EMISSIONS ALLOWANCES
dc.subject	EMISSIONS FROM AVIATION
dc.subject	EMISSIONS FROM SOURCES
dc.subject	EMISSIONS GROWTH
dc.subject	EMISSIONS INTENSITY
dc.subject	EMISSIONS MITIGATION
dc.subject	EMISSIONS PER TONNE
dc.subject	EMISSIONS PRICES
dc.subject	EMISSIONS REDUCTION
dc.subject	EMISSIONS REDUCTIONS
dc.subject	EMISSIONS STANDARDS
dc.subject	EMISSIONS TARGETS
dc.subject	EMISSIONS TAXES
dc.subject	EMISSIONS TRADING SCHEMES
dc.subject	EMPIRICAL EVIDENCE
dc.subject	ENERGY EFFICIENCY
dc.subject	ENVIRONMENTAL
dc.subject	ENVIRONMENTAL BENEFITS
dc.subject	ENVIRONMENTAL DAMAGES
dc.subject	ENVIRONMENTAL IMPACTS
dc.subject	EQUILIBRIUM
dc.subject	EQUITY OBJECTIVES
dc.subject	EXCISE TAXES
dc.subject	EXTERNALITIES
dc.subject	FEASIBILITY
dc.subject	FISHING
dc.subject	FLAGS OF CONVENIENCE
dc.subject	FLEETS
dc.subject	FLIGHT PATHS
dc.subject	FOSSIL FUEL
dc.subject	FREE ALLOWANCES
dc.subject	FREIGHT
dc.subject	FREIGHT COSTS
dc.subject	FREIGHT SERVICES
dc.subject	FUEL
dc.subject	FUEL CHARGES
dc.subject	FUEL CONSUMPTION
dc.subject	FUEL COSTS
dc.subject	FUEL ECONOMY
dc.subject	FUEL EFFICIENCY
dc.subject	FUEL EFFICIENCY IMPROVEMENT
dc.subject	FUEL OIL
dc.subject	FUEL PRICE
dc.subject	FUEL PRICES
dc.subject	FUEL PRODUCTION
dc.subject	FUEL TAX
dc.subject	FUEL TAX RATES
dc.subject	FUEL TAXATION
dc.subject	FUEL TAXES
dc.subject	FUEL USE
dc.subject	FUELS
dc.subject	GASOLINE
dc.subject	GHG
dc.subject	GLOBAL EMISSIONS
dc.subject	GLOBAL EMISSIONS REDUCTION
dc.subject	GLOBAL GREENHOUSE GAS
dc.subject	GLOBAL GREENHOUSE GAS EMISSIONS
dc.subject	GREENHOUSE
dc.subject	GREENHOUSE GAS
dc.subject	GREENHOUSE GAS EMISSIONS
dc.subject	GREENHOUSE GASES
dc.subject	GROSS RECEIPTS
dc.subject	HEAVY FUEL OIL
dc.subject	HYDROGEN
dc.subject	IMPORT PRICES
dc.subject	IMPORTS
dc.subject	INCOME
dc.subject	INPUT PRICES
dc.subject	INTERNATIONAL AIR TRAVEL
dc.subject	INTERNATIONAL AVIATION
dc.subject	INTERNATIONAL FLIGHTS
dc.subject	INTERNATIONAL TRANSPORT
dc.subject	IPCC
dc.subject	JOURNEY
dc.subject	LAND USE
dc.subject	LIGHT TRUCKS
dc.subject	LIQUEFIED NATURAL GAS
dc.subject	LOCAL AIR POLLUTION
dc.subject	LOCAL AIR QUALITY
dc.subject	LOW-SULFUR
dc.subject	MARGINAL COST
dc.subject	MARITIME TRANSPORT
dc.subject	MARKET DISTORTIONS
dc.subject	MARKET FAILURE
dc.subject	MARKET FAILURES
dc.subject	MINIMUM PRICE
dc.subject	MOBILITY
dc.subject	MONETARY FUND
dc.subject	MOTOR FUEL
dc.subject	MOTOR FUEL TAXES
dc.subject	NATURAL GAS
dc.subject	NOISE
dc.subject	OIL PRICES
dc.subject	OIL PRODUCTION
dc.subject	OIL PRODUCTS
dc.subject	OILS
dc.subject	OZONE
dc.subject	PASSENGER NUMBERS
dc.subject	PASSENGER REVENUE
dc.subject	PASSENGER TRAVEL
dc.subject	PASSENGERS
dc.subject	PER CAPITA INCOME
dc.subject	POLICY IMPLICATIONS
dc.subject	POLICY SCENARIO
dc.subject	POLICY SCENARIOS
dc.subject	POLLUTION
dc.subject	POWER
dc.subject	POWER STATIONS
dc.subject	PP
dc.subject	PRICE CHANGE
dc.subject	PRICE ELASTICITY
dc.subject	PRICE ELASTICITY OF DEMAND
dc.subject	PRICE FLOOR
dc.subject	PRICE IMPACTS
dc.subject	PRICE INCREASE
dc.subject	PRODUCERS
dc.subject	PUBLIC GOODS
dc.subject	PUBLIC SPENDING
dc.subject	REDUCING EMISSIONS
dc.subject	REDUCTION IN FUEL USE
dc.subject	REDUCTION IN TRAVEL
dc.subject	ROUTE
dc.subject	ROUTES
dc.subject	RUNWAYS
dc.subject	SAFETY
dc.subject	SOCIAL COSTS
dc.subject	SPEEDS
dc.subject	SUBSTITUTION
dc.subject	SULFUR
dc.subject	SULFUR EMISSIONS
dc.subject	SULPHUR
dc.subject	SULPHUR CONTENT
dc.subject	SUNLIGHT
dc.subject	SUPPLY CURVE
dc.subject	SUPPLY CURVES
dc.subject	SURCHARGES
dc.subject	TAX
dc.subject	TAX DESIGN
dc.subject	TAX EXEMPT
dc.subject	TAX EXEMPTIONS
dc.subject	TAX RATE
dc.subject	TAX REVENUE
dc.subject	TAX SYSTEMS
dc.subject	TAXATION OF FUEL
dc.subject	TOTAL COSTS
dc.subject	TOTAL EMISSIONS
dc.subject	TRADING PATTERNS
dc.subject	TRAFFIC MANAGEMENT
dc.subject	TRANSIT
dc.subject	TRANSPORT COSTS
dc.subject	TRANSPORT MARKET
dc.subject	TRANSPORT MODES
dc.subject	TRANSPORTATION
dc.subject	TRANSPORTATION ACTIVITIES
dc.subject	TRANSPORTATION COSTS
dc.subject	TRAVEL COSTS
dc.subject	TRAVEL DEMAND
dc.subject	TRAVELERS
dc.subject	TRIP
dc.subject	TRIPS
dc.subject	VEHICLE
dc.subject	VEHICLE EMISSIONS
dc.subject	WAGES
dc.subject	WELFARE EFFECTS
dc.subject	WINDFALL PROFITS
dc.title	Market-Based Instruments for International Aviation and Shipping as a Source of Climate Finance
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region