Factsheets- No.14: The External Costs of Aviation
Trends in Air Travel
- Visits to and from the UK increased by 170% between 1980 and 2001.
- Passengers at UK airports tripled over the same period from 50 million to 162 million.
- Future forecasts show demand rising by between 4 and 5%.
What the External Costs of Aviation?
- Internal costs are those that have been anticipated by industry, such as the cost of fuel and labour.
- External Costs are the unintended consequences resulting from normal industry activity. For example:
- noise pollution from the take-off and landing of aircraft;
- local air pollution;
- global climate change resulting from greenhouse gas emissions from aircraft;
- congestion in the air and on the runways;
- safety; and
- impact on natural heritage.
- There are also in-direct external costs which, although occur outside of the industry, are still closely related to it. For example, the costs of providing surface access to airports and energy production.
Why Should Aviation Pay for its External Costs?
- Government policy supports the principle that polluters should meet the costs that they impose on society.
- Aviation is one of the fastest growing transport sectors world wide and is already responsible for 3.5% of climate change emissions resulting from all human activity - as much as the total greenhouse gases emitted by the UK.
- By 2050, aviation's contribution to climate change could grow to as much as 15%.
- Those affected by noise pollution from aircraft is estimated to increase by 42% across Europe (between 2002 and 2020) - a rise from 2.23 million to 3.17 million.
- Aviation Passenger Duty (currently between £5 and £40 per passenger) raises £800 million a year, yet Climate Change costs are around £1.4 billion per year, which means that UK industry only covers around 50% of the climate change costs it generates. This does not include other external costs.
- By not paying for its full external costs, the aviation industry contributes to the over-consumption of its services. For example, passengers at UK airports tripled in the 20 years to 2001, from 50 million to 162 million. With fare prices expected to fall, future forecasts predict demand for air transport will rise at 5% each year.
- If the aviation industry is not responsible for covering its costs then there is less incentive for the industry to reduce the negative external impacts it generates.
Return to: Aviation's external costs index