Reforming the Air Passenger Duty as an Environmental Tax

Abstract

In light of the UK Coalition Government's announced intention to reform Air Passenger Duty, this article examines the design flaws which render it an inadequate environmental tax. By identifying the misconceived consequences and environmental inefficiencies of this blunt instrument, the need for reform is shown to be overdue. Specific reform proposals are set out for a per-plane tax able to affect behaviour in a manner more closely linked to environmental objectives, including the UK's sustainable transport policy.