The Costs and Benefits of Greening Africa’s Aviation Industry with Carbon taxes: the case of Ethiopian, Egyptian, Moroccan, and South African Airlines

Abstract

This report examines the costs and benefits of implementing carbon taxes in the aviation industry of four major African airlines: Ethiopian, Egyptian, Moroccan, and South African Airlines. It analyzes the potential financial gains and losses from applying carbon taxes at different rates, considering global, regional, and intra-African emissions. The findings suggest significant revenue generation potential if African countries lead in carbon tax implementation, but also highlight the risk of substantial losses if other regions apply carbon taxes first.