4 ms·

So if we priced airlines in regards to all of their externalities, they would have to pay for climate change but would get a portion of the all revenue derived

So if we priced airlines in regards to all of their externalities, they would have to pay for climate change but would get a portion of the all revenue derived by business trips (ie. the time saved traveling by air compared to other modes of transport and what the employees traveling would have been able to produce during that time). I wonder if they would end up better off under that system.

dabbledash 7y ago
They’re already capturing those benefits - they are among the reasons customers buy tickets and thus contribute to the price. I’m sure positive externalities are a thing, but direct benefits to one party in a transaction aren’t externalities.
- fuzz4lyfe 7y ago
  In the same sense the climate change effects are also priced in as most people in the west use air travel or add enough carbon via other means to have to be personally responsible for any ill effects.