The impact of a carbon tax on international tourism

Tol, Richard S J (2007) The impact of a carbon tax on international tourism. Transportation Research Part D: Transport and Environment, 12 (2). pp. 129-142. ISSN 1361-9209

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Abstract

A simulation model of international tourist flows is used to estimate the impact of a carbon tax on aviation fuel. The effect of the tax on travel behaviour is small: A global tax of $1000/t C would change travel behaviour and reduce carbon dioxide emissions from international aviation by 0.8%. A carbon tax on aviation fuel would particularly affect long-haul flights, because of high emissions, and short-haul flights, because of the emission during take-off and landing. Medium distance flights would be affected least. This implies that tourist destinations that rely heavily on short-haul flights or on intercontinental flights will see a decline in international tourism numbers, while other destinations may see international arrivals rise. If the tax is only applied to the European Union, tourists would stay closer to home and European tourism would grow at the expense of other destinations. Sensitivity analyses reveal that the qualitative insights are robust.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences > GE170 Environmental policy
G Geography. Anthropology. Recreation > GV Recreation. Leisure
H Social Sciences > HB Economic theory. Demography
H Social Sciences > HE Transportation and communications > HE9761 Air transportation. Airlines
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Depositing User: Richard Tol
Date Deposited: 17 Apr 2012 13:51
Last Modified: 06 Jul 2012 09:26
URI: http://sro.sussex.ac.uk/id/eprint/38321
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