Carbon and Noise Trading in Aviation

Greenhouse gas (GHG) emissions and airport noise are among the key challenges facing the air transportation industry. This chapter looks into emissions trading schemes as a policy tool to mitigate the GHG and noise impacts of aviation. It describes the principles of emissions trading, provides examples of successful trading schemes outside of aviation, lessons learnt from them, and portrays the current status of including aviation in emissions trading. The potential for applying the tradable permit approach to noise is then discussed briefly.