• An environmental policy to raise the price of travel
(e.g. a national aviation tax) on a national or supranational
basis will be ineffective if the price elasticity
of outbound travel is low, as found. A price inelastic
response at the national or supra-national level
means that the impact in terms of reducing demand
will be proportionately less than the increase in price.
The greater price sensitivity of inbound overseas
residents will result in a diversion to other destinations,
a “leakage of carbon”, and thus a reduction in
environmental effectiveness.
The focus of existing policy to reduce CO2 emissions from
air travel has been on trying to manage air travel demand
by raising the cost of travel for passengers. The results
contained in this report show that such policies are likely
to fail. Decoupling emissions from travel growth needs to
focus not on demand management but on mechanisms
to bring about emissions reduction measures from
technology, infrastructure and operations.
IATA’s 4-Pillar Climate Strategy3 , which was endorsed
by the Assembly of the International Civil Aviation
Organisation in 2007, focuses action on emission
reduction measures from technology, infrastructure,
operations and those brought about by well designed
economic instruments.
Effectively decoupling emissions from air travel growth
will require policy-makers and the industry to look beyond
simple economic instruments:
• Technological progress will require collaboration
across the value chain and across countries.
• Governments will need to play a role in funding
fundamental research.
• Political will is perhaps one of the most important
mechanisms for delivering emissions reductions from
infrastructure improvements.
• The lack of implementation of a Single European
Sky is one glaring omission in policy action to reduce
emissions from air travel.