Nowadays, there is an increasing concern for environmental regulations regarding the airlines industry, these extends from noise pollution to CO2 emissions. Aside from that, there are also the congestion externalities due to the increased passenger demand. These are examples of negative externalities that the airlines industry faces. Thus, these advance to legislations concerning the disposal of refuse, flight paths and is urging the boundaries towards new technological advances with quieter aircraft.
Waste disposal costs and environmental protection laws are included in the external environmental factors. Currently, transport processes account for about 25% of global carbon dioxide (CO2) emissions. Aviation contributes 12% to this transport total (or 2.5% of global emissions) and road transport 77%. Road traffic and aviation are the fastest growing sources of CO2 which is the main greenhouse gas, and are contributory factors to the effect known as global warming (EEA, 2000). The United States was known to be the world’s biggest air polluters thereby cleaning up their act with regards to pollution is a serious issue. If the government’s idea of posting extra charges for air pollution in the airlines industry, then this could mean higher costs for air traveling. Thus, there would be fewer people traveling by air.
Another negative externality faced by the airline industry was the noise pollution. Thus, some countries implemented various schemes which could heavily affect the airline industry. One scheme would be the night flight quota wherein lesser air flights will be done every night. However, if the scheme was changed then definitely people will be against the government. Somehow this might affect the econom ...