Scrapping exemptions for long-haul and private flights and taxing non-CO2 emissions could multiply EU aviation carbon revenues tenfold, a new report says
Can’t you make that argument for any tax? That’s not really how it works. They charge as much as they can based on supply and demand. They can’t just increase prices or they already would have. They aren’t setting the price where it is to be nice.
Yes, that’s exactly the point. We could calculate how much taxing 100EUR per pair of horrible white terry socks would make in theory, and then people would just stop buying white socks and we wouldn’t make whatever number we calculated (it would still be a win in my book).
They charge as much as they can based on supply and demand.
Not really: ticket prices (at least the economy ones) are mostly driven by competition and so cost is a big component of price.
Anyway, I wasn’t arguing against taxing aviation: I was arguing that supporting extra taxation based on a “study” (in quotes because IIUC it’s a publication from an interest group rather than an actual, peer reviewed, scientific study *) that solely calculates the potential theoric revenue is… it’s just stupid.
* and even proper scientific studies are kinda a dime a dozen for any economic theory and its contrary, which doesn’t however mean we shouldn’t at least try to think about what actual, practical, tangible consequences a change in economic policy is likely have
Yes, that’s exactly the point. We could calculate how much taxing 100EUR per pair of horrible white terry socks would make in theory, and then people would just stop buying white socks and we wouldn’t make whatever number we calculated (it would still be a win in my book).
Oh, if you’re just saying that specific number is wrong, then yeah, probably. It’s an estimate. I don’t know if this estimate includes estimated decrease in consumption or not, but yeah it’s likely not completely accurate, and that’s always going to be the case.
Not really: ticket prices (at least the economy ones) are mostly driven by competition and so cost is a big component of price.
That’s true when there aren’t alternative methods of transportation competing with them, but travel inside of Europe has to compete with trains. If they increase prices they lose customers to trains. For other routes, sure. All their costs will increase and you don’t have another choice.
and even proper scientific studies are kinda a dime a dozen for any economic theory and its contrary, which doesn’t however mean we shouldn’t at least try to think about what actual, practical, tangible consequences a change in economic policy is likely have
Can’t you make that argument for any tax? That’s not really how it works. They charge as much as they can based on supply and demand. They can’t just increase prices or they already would have. They aren’t setting the price where it is to be nice.
Yes, that’s exactly the point. We could calculate how much taxing 100EUR per pair of horrible white terry socks would make in theory, and then people would just stop buying white socks and we wouldn’t make whatever number we calculated (it would still be a win in my book).
Not really: ticket prices (at least the economy ones) are mostly driven by competition and so cost is a big component of price.
Anyway, I wasn’t arguing against taxing aviation: I was arguing that supporting extra taxation based on a “study” (in quotes because IIUC it’s a publication from an interest group rather than an actual, peer reviewed, scientific study *) that solely calculates the potential theoric revenue is… it’s just stupid.
* and even proper scientific studies are kinda a dime a dozen for any economic theory and its contrary, which doesn’t however mean we shouldn’t at least try to think about what actual, practical, tangible consequences a change in economic policy is likely have
Oh, if you’re just saying that specific number is wrong, then yeah, probably. It’s an estimate. I don’t know if this estimate includes estimated decrease in consumption or not, but yeah it’s likely not completely accurate, and that’s always going to be the case.
That’s true when there aren’t alternative methods of transportation competing with them, but travel inside of Europe has to compete with trains. If they increase prices they lose customers to trains. For other routes, sure. All their costs will increase and you don’t have another choice.
Isn’t this why we have studies?