Including Aviation in the European Union Emissions Trading Scheme: Impacts on Industries, Macro-economy and Emissions in China

Ling-Yun HE, Yi-Xuan GAO


In October 2008, European Union (EU) announced that it would include the international aviation in the European emission trading system (EU ETS). This paper builds a static computable general equilibrium (CGE) model based on the 2007 input-output table, and estimates the impacts from this policy on China’s macro-economic, residents' welfare, aviation industry, and carbon dioxide (CO2) emissions. Our results indicate that the implication of this policy has negative effects on China’s economy and residents’ welfare; nevertheless, it also reduces the outputs of industries especially that in aviation industry.

Full Text:



International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.