Will the EU-ETS instigate airline network reconfigurations?
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Based on the proposal of the European Commission on including the aviation sector into the European Emission Trading Scheme, a route-based analysis is conducted simulating cost and demand implications for selected airlines. For a scenario of €20/tons CO2, results indicate that the EU-ETS CO2-based cost increases for the airlines are between €9 and €27 per route and therefore, as an individual factor, are not high enough to instigate major route reconfigurations among European airlines.
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