COST EFFECTIVENESS ANALYSIS OF LOCAL AIR QUALITY CHARGES. Roger Roy Director General, Economic Analysis Transport Canada
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1 COST EFFECTIVENESS ANALYSIS OF LOCAL AIR QUALITY CHARGES Roger Roy Director General, Economic Analysis Transport Canada
2 Overview of presentation SCOPE OF THE WORK ANALYSIS CONDUCTED FINDINGS
3 SCOPE OF WORK Aviation NOx emissions only Two airports Zurich (1/9/97) - Stockholm 1/1/98 Terms and conditions of charges introduced: Emission class assigned to engines (5 at Zurich, 6 at Stockholm) A % of the landing fees - 0% to 40% at Zurich; 0% to 30% at Stockholm Revenue neutrality Not considered: Quantifications of emissions impact Local emission dispersions Impact on human health Formation of secondary particles Identification of hazardous pollutants
4 Aircraft movements by emission charge classes at Zurich 100% 80% NOx + 60% 40% 20% 0% Emission Class 5 Emission Class 4 Emission Class 3 Emission Class 2 Emission Class 1
5 Changes in average aircraft classification Zurich, Stockholm, Western Europe Airports Average Category, Swiss DC Europe Zurich Stockholm
6 Cost Comparison of different aircraft types Aircraft NEW Older Smaller Bigger Operating Costs # of seats 123 Reference Emission NOx Charge 0.5% 1.1% 0.3% 1.5% Capital Costs per trip 16.2% 5.2% 10.4% 23.5% Other DOC 83.3% 87.4% 49.7% 104.7% Total DOC 100.0% 93.7% 60.4% 129.7%
7 NOx Charge - Developing Country Carriers 12 Distribution of the Number of Flights per Developing Country Airline at Zurich, Frequency > 1000 Number of Flights per year Source: Unique Flughaven Zurich
8 NOx Charge - Developing Country Carriers 5 Emission Class for 5 biggest Developed & Developing Country's Carriers, Zurich, Developed Developing
9 NOx Emissions per Aircraft Movement Total NOx emissions (kg) per movement 6,5 6,0 5,5 5,0 4,5 4,0 3,5 3,0 2, ARN ZRH
10 Aircraft Movements per NOx Emissions Class Index 1998 = Indexed Number of Movements, by Emission Class Zurich Class I Class II Class III Class IV Class V
11 Revenue-neutrality of Charge - Zurich Revenue neutrality of Zurich Nox charges SFr. 400,000 SFr. 200,000 SFr. 0 -SFr. 200,000 -SFr. 400,000 -SFr. 600,000 -SFr. 800,
12 Net income of NOx Charge Zurich 80,000 Net Income by Movement ,000 71,183 60,000 50,000 40,000 29,700 30,000 20,000 10, ,689 3,8853, [-200] - [-175] [-175] - [-150] [-150] - [-125] [-125] - [-100] [-100] - [-75] [-75] - [-50] [-50] - [-25] [-25] Number of Movements Net Charge Paid by Movement
13 Use of charges net revenues Zurich - Mitigation measures & proceeds of charge Negative net proceeds Measures not contributing to NOx emissions reductions excluded from analysis, e.g. Air quality monitoring Development of an emission inventory and dispersion modeling Air quality management and research work Only measure considered construction of fixed ground power for aircraft at piers 75 tonnes of NOx saved attributable to measure Costs of NOx saved on high side but not extreme Add text
14 FINDINGS From analysis conducted Comparable shift to less NOx emitting aircraft at other airports but without a charge Significance of normal fleet renewal Level of the charge not high enough Revenue-neutrality led to winners > losers Additional NOx reduction achieved at low cost effectiveness from a mitigation measure Marginal impact on NOx emissions directly attributable to the charge at Zurich and Stockholm
15 THANK YOU for your attention
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