Meeting external costs in the aviation industry

The Commission for Integrated Transport (CfIT), an independent body advising the UK Government on integrated transport policy, has commissioned CE to assist and advise on the full range of issues associated with meeting the external costs of aviation. For this purpose CE has prepared a report, which objectives are to give a substantiated recommendation:

• how and why to meet external costs;
• which external costs to consider;
• how to design the instruments (the incentive structure) for an internalisa-tion policy;
• what incentive levels to use.

Furthermore, the report offers an outline assessment of whether the aviation industry covers its external costs, given the current policy regime. This report is fully based on a concise analysis of existing (inter)national sources and oral and written information from key stakeholders in the United Kingdom.