1. KIC InnoEnergy CLASS EXERCISE: Rebound tickets 1 Peeters et al., Transportation Research Part D 44 (2016) 30–42 Fig.2

2. KIC InnoEnergy CLASS EXERCISE: Rebound tickets 2 Read, from The Guardian (8 Feb. 2016) : UN agency seeks to end rift on new aircraft emission rules (http://www.theguardian.com/environment/2016/feb/08/un-agency-seeks-to-end-rift-on-new-aircraft-emission-rules)http://www.theguardian.com/environment/2016/feb/08/un-agency-seeks-to-end-rift-on-new-aircraft-emission-rules) “The CO2 standard will push industry to be as fuel-efficient as possible in all market conditions to reduce GHG (greenhouse gas) emissions and the impact of aviation on climate change.” 1.(What is the difference between CO2-emissions standards and fuel-efficiency standards?) 2.What rebound effects do you expect?  Think: direct and indirect, income and price, consumer-sector-economy 3.Can you think of a way to measure to which extent air travel emissions growth is due to fuel-efficiency improvements? 4.Considering the rebound effect, is this policy futile?  Yes. Because: ….  No. Because:....

3. KIC InnoEnergy CLASS EXERCISE: Rebound tickets 3 “ICAO is trying to nail down the first of its two-part strategy as soon as Monday after six years of talks. It is due to finalize a market-based mechanism for all airlines later this year.” “Environmental groups (…) say the standard needs to be accompanied by a strong global market-based approach.” 1.Why would a two-part strategy be necessary? 2.What should that market-based mechanism do? 3.What kind of policy instrument could that be? Think about (e.g.): Generic vs. technology specific Economic vs. regulatory Where in the supply chain should it intervene? What have you learned about energy efficiency as a policy instrument?