Abstract
Aviation transport action group reported that carbon dioxide (CO2 ) emission of airlines in 2017 was 859 million tons which is 2% of global emissions, (Akça, Z. 2018). It adds that the bank has calculated that “under the worst case ‘carbon intensive’ scenario, living standards will fall by 6.7% for Bangladesh by 2050”. This paper investigates how Bangladesh can respond to best optimize to the EU’s Aviation Carbon Tax Scheme proposed by the Stackelberg game model. The analytic result shows that the strategy “refusal of pay” is the best one which Bangladesh is taking step of. Numerical simulations specify a quantitative visual of the consequences found. The policy is found to be effectively not flying as much would reduce the CO2 emission and consequently, purchase of new aircraft, retrofitting and upgrade improvements on existing aircraft, latest designs in aircraft/engines, fuel efficiency standards and alternative fuels etc. reducing the overall emissions. The main contribution of this paper is to study a new international issue for developing country on aviation carbon tax and CO2 emissions policy suggestions for the aviation technology.
Highlights
Climate change is one of the top concerns of the international community in recent years
It can be seen that South Asia will be affected by the climate change and it is warning the risk of weather changes
The aviation industry has brought a great change by giving some efforts and advance technology to lower aviation-related emissions: these are the use of alternative fuels, improved airplane designs, new aircraft concepts and fuel-saving operational procedures
Summary
Climate change is one of the top concerns of the international community in recent years. It is suggested that the international trade would be disrupted once if this kind of unilateral measure takes effect and no global effort stops it Another important unfairness is the irrationality of the scheme of aviation emission charges. Because of the flexibility of the open markets, the per capita income is changing and the airlines are giving the facilities to add more routes, frequencies, and seats to capture demand This is found that the GDP per capita helps to increase the demand in a more regulated environment, on the other hand, travel growth will be restrained because of the lower service quality and higher pricing. Asselt & Biermann (2007), Asselt & Brewer (2010), Kuik & Hofkes (2010) and Babiker (2005) studied the issue in international climate and carbon emission.
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