Environmental Regulations in the Aviation Industry - Assignment Example

Emissions trading or cap which is a market-approach used in controlling pollution by providing economic incentives for gaining a reduction in the rate of emissions of pollutants offers a better means of regulating the environmental impact of the aviation industry (Wolfe & NewMyer, 1985). Aviation tax which is a tax levied on passengers who pass through the airport is one of the taxes used to regulate the activities in the industry. The tax is thus included in the cost of air travels hence it is met by all people who are traveling.

This is known as landing fee as the bulk of it is paid by the airlines and transferred to the customers through increased ticket prices. The fact that the taxes are based on the popularity of an airline, means that some will pay more while others will tend to pay less. This does not offer a better means of regulating environmental degradation caused by the aviation industry. It is a proven fact that the rate of pollution remains the same irrespective of the popularity of the airline hence the levies charged need to be the same for all the airlines.

Emissions trading seem to offer the best way of controlling pollution in the aviation industry as it is charged equally for all the airlines.