Economics

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One reason why there is such fast growth is that air travel is under-priced. Unlike most other sectors of the economy, it pays virtually no tax; nor does it recompense society for the huge environmental impacts. This means that air travel competes unfairly with other sectors of the economy for resources and for the disposable income of travellers.

While aviation clearly has a role to play in a modern economy, it is by no means obvious that we need more and more air travel in order to sustain and grow the economy. A whole industry has developed which aims to convince the public and decision-makers of the huge economic importance of (more) air travel. See the ‘misleading cases’ section.

Economics articles

Aug 17
2010

A little bit of the aviation’s tax dodge removed »

Jul 22
2010

No look-in for environment in government’s economic regulation of airports »

Jul 16
2010

Germany proposes new aviation tax »

Jul 16
2010

Per-plane tax – the story so far »

Jun 30
2010

AEF seminar with the New Economics Foundation »

Jun 25
2010

Osborne postpones action on per-plane tax till the autumn »

May 21
2010

Coalition statement confirms position on runways and taxes »

May 14
2010

Coalition government will cancel Heathrow expansion, refuse new runways at Gatwick and Stansted, and close loopholes in aviation taxation »

May 4
2010

Heathrow expansion would give negative economic benefit »

Apr 30
2010

Airlines call for compensation for volcano disruption »

More articles...