Decarbonizing Aviation: Cash-for-Clunkers in the Airline Industry

Jan Brueckner, Matthew Kahn and Jerry Nickelsburg

No 32205, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The durability of the transportation capital stock slows down the pace of decarbonization since newer vintages feature cutting-edge technology. If older vintages were to be retired sooner, the social cost of travel would decline. This paper analyzes and explores the viability of a potential cash-for-clunkers program for the airline industry, which would help to hasten decarbonization of US aviation. Our estimation and calculations show that airlines can be induced to scrap rather than sell older planes upon retirement with a payment that is less than the forgone carbon damage, yielding net social benefits.

JEL-codes: Q54 R49 (search for similar items in EconPapers)
Date: 2024-03
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-tre
Note: EEE
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