A new study led by BC3 researchers Xaquín García-Muros, María Victoria Román and BC3 Adjunct Researcher Alejandro Rodríguez-Zúñiga, in collaboration with IEEP has simulated the effects on European households of environmental taxes on aviation.

We have simulated the effect on the application of a tax on the full auction of EU ETS permits for the aviation industry; and the application of a tax on tickets, with higher rates for longer flights. (Xaquín García-Muros, BC3 MSCA fellow researcher)

The report “Can Polluter Pays principles in the aviation sector be progressive?” concludes that, if properly designed and implemented, environmental taxes can have progressive effects on European households.

The results suggest that, if environmental taxes are carefully designed and implemented, additional levies on the aviation sector can have progressive distributional outcomes and create positive welfare effects for the majority of EU households.

With this study we intend to make visible the potential of environmental taxation on luxury goods such as air transport to facilitate a just transition towards clean transport modes. (María Victoria Román, BC3 researcher)