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  • The impact of a carbon tax on international tourism.

    Author(s) : Tol, R. S. J.

    Author Affiliation : Economic and Social Research Institute, Whitaker Square, Sir John Rogerson's Quay, Dublin 2, Irish Republic.

    Bulletin : Nota di Lavoro - Fondazione Eni Enrico Mattei (FEEM) 2007 No.34.2007 pp.29 pp.

    Abstract : A simulation model of international tourist flows is used to estimate the impact of a carbon tax on aviation fuel. The effect of the tax on travel behaviour is small: A global $1000/tC would change travel behaviour to reduce carbon dioxidecarbon dioxideSubject Category: Chemicals and Chemical Groups
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    emissions from international aviation by 0.8%. This is because the imposed tax is probably small relative to the air fare. A $1000/tC tax would less than double air faresfaresSubject Category: Miscellaneous
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    , and have a smaller impact on the total cost of the holiday. In addition, the price elasticity is low. A carbon tax on aviation fuel would particularly affect long-haul flights, because of high emissions, and short-haul flights, because of the emissionemissionSubject Category: Miscellaneous
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    during take-off and landing. Medium distance flights would be affected least. This implies that tourist destinationsdestinationsSubject Category: Miscellaneous
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    that rely heavily on short-haul flights (that is, islands near continents, such as Ireland) or on intercontinental flights (e.g., Africa) will see a decline in international tourisminternational tourismSubject Category: Activities
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    numbers, while other destinations may see international arrivals rise. If the tax is only applied to the European Union, EU tourists would stay closer to home so that EU tourism would grow at the expense of other destinations. Sensitivity analyses reveal that the qualitative insights are robust. A carbon tax on aviation fuel would have little effect on international tourism, and little effect on emissions.

    Record Number : 20073292500

    Publisher : Fondazione Eni Enrico Mattei (FEEM)

    Location of publication : Milano

    Country of publication : Italy

    Language of text : English

    Indexing terms for this abstract:

    Descriptor(s) : air transportair transportSubject Category: Disciplines, Occupations and Industries
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    , carbon dioxidecarbon dioxideSubject Category: Chemicals and Chemical Groups
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    , destinationsdestinationsSubject Category: Miscellaneous
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    , emissionemissionSubject Category: Miscellaneous
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    , faresfaresSubject Category: Miscellaneous
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    , fuelsfuelsSubject Category: Commodities and Products
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    , international tourisminternational tourismSubject Category: Activities
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    , international travelinternational travelSubject Category: Miscellaneous
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    , simulation modelssimulation modelsSubject Category: Techniques, Methodologies and Equipment
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    , taxestaxesSubject Category: Miscellaneous
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    , tourist industrytourist industrySubject Category: Disciplines, Occupations and Industries
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    , transporttransportSubject Category: Miscellaneous
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    Identifier(s) : taxation, transportation