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ID: 191276

Climate ambitions for European aviation: Where can sustainable aviation fuels bring us? / Mayeres, Inge

Mayeres, Inge	Journal Article
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Summary/Abstract

This paper assesses the costs of policies to promote the uptake of sustainable aviation fuels to reduce the greenhouse gas emissions of aviation in the EU. Different policies for attaining a minimum sustainable aviation fuel share are assessed, taking into account sustainability requirements and the costs and potential of feedstock supply. The cost-effectiveness of these policies is compared to simpler CORSIA-type emission trading schemes, using a model that combines the demand functions for road, rail and maritime transport fuels, the supply functions of the related feedstocks as well as the environmental sustainability characteristics of the fuels. For aviation a distinction is made between fuel demand for intra-EU flights and for incoming and outbound EU flights. It is shown that policies that aim to achieve a minimum share of 3.5% or 5.25% sustainable aviation fuels by 2030 in the EU are 5–10 times more expensive to reduce greenhouse gas emissions than a simpler emission trading mechanism like CORSIA.

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ID: 118819

Taxation of diesel cars in Belgium – revisited / Mayeres, Inge; Proost, Stef

Proost, Stef	Journal Article
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2013.

Summary/Abstract

This paper compares the current taxation of diesel and gasoline cars in Belgium with the guidelines for optimal taxation. We find that diesel cars are still taxed much less than gasoline cars, resulting in a dominant market share for diesel cars in the car stock. If the fuel tax is the main instrument to control for externalities and generate revenues, the diesel excise should be much higher than the excise on gasoline for two reasons: diesel is more polluting than gasoline and more importantly, through the better fuel efficiency, diesel cars contribute less fiscal revenues per mile.

Key Words

Diesel Cars ; Optimal Taxation ; Environmental Externalities

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