Unilateral regulation and greenhouse gas emissions: The case of the Airline Industry

This paper provides an analytical framework for investigating the effects of unilateral measures to control greenhouse gas emitted by the aviation industry. It is found that, unilateral efforts might lead to an increase in global greenhouse gas emissions. Furthermore, emissions taxes implemented as part of such measures could lead to larger negative impacts on home than on foreign airlines, possibly resulting in competitive issues.

► We examine the effects of unilateral GHG emissions regulation in airline industry.
► The regulation has more negative impact on home airline than foreign airline.
► Thus the unilateral action may confer a competitive advantage to foreign airline.
► Unilateral regulation might lead to an increase in global GHG emissions.