This thesis aims to analyze the economical and legal implications of greenhouse gas emissions within the airline industry. The first legal analyses concern the EU’s publicly imposed obligations concerning flights within the relevant geographical area. Here we find that companies operating in the airline industry are obligated to reduce their greenhouse gas emissions by a given percentage every year. The EU obligations will result in new costs for certain airline companies. These costs will be identified and analyzed from a transaction cost perspective. We derive that there will be costs stemming from several sources including contact- and control costs. The contact costs include time consumption, education and potential acquisition of labor. The control costs include the cost of monitoring the emissions of the company. In this thesis we assume that the airline companies will trade CO2 allowances in order to meet the imposed emission limits. We therefore analyze the rules for trading CO2 allowances bilaterally with other companies, and the rules for trading on the international energy exchange, Nordpool. Assuming that Danish law governs the contractual relationship between two allowance trading companies, we derive that the Danish law of obligation, primarily expressed in the Danish Sales of Goods Act, will be applicable to the bilateral trade of emission allowances. We conclude that the Danish laws of obligation thoroughly cover the potential implications of the short-term emission agreements. To ensure the legal position of the parties and to minimize the transaction costs of potential legal consequences in the long-term agreements, we advise the airline companies to incorporate some specific provisions. In the last chapter we conclude that the airline companies must consider the contact-, contract- and control costs of emission trading, in order to minimize transaction costs. We conclude that they must estimate their demand for allowances, the contact costs and the cost of drafting the specific contracts. After estimating these costs, the airline companies will be able to choose the emissiontrading platform, which is the most transaction cost minimizing.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||114|