The (non-) taxation of international aviation and maritime fuels: Anomalies and possibilities

Michael Keen, Ian Parry, Jon Strand, 09 September 2014

Coordination problems make difficult the taxation of fuels used in international transport, but there are many economic reasons to pursue such a policy – to say nothing of environmental and fiscal concerns. This column argues that efficiency gains from correcting externalities and replacing more distortionary taxes make this daunting task worth pursuing.

Should the EU suspend its airline emissions charge?

Cameron Hepburn, 30 October 2012

The EU’s Emissions Trading System includes all flights to, from and within Europe as eligible for regulation – something that has faced strong opposition from the US and China. With Airbus’s orders from China falling, the pressure has grown from within Europe. This column argues that for reasons of economic principle, legality and practicality, the EU should stand its ground.

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