Predict and decide - aviation, climate change and UK policy

Abstract

This paper looks at the implications of aviation growth in the UK and the need to manage demand for air travel. Aviation emissions are increasing, and if not restricted may make it impossible to meet climate change targets. Aviation does bring some economic benefits. Public opinion surveys suggest increasing support for making flying more expensive. Raising the level of air passenger duty is the most obvious measure for restraining demand quickly. Another policy to be considered is applying value added tax to domestic air fares. In the long term, personal carbon allowances could be a solution.

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